Cover
Cover | 12 Months Ended |
Aug. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Aug. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --08-31 |
Entity File Number | 001-32500 |
Entity Registrant Name | TRX GOLD CORPORATION |
Entity Central Index Key | 0001173643 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 277 Lakeshore Road East |
Entity Address, Address Line Two | Suite 403 |
Entity Address, Address Line Three | Oakville |
Entity Address, City or Town | Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | L6J 1H9 |
City Area Code | 844 |
Local Phone Number | 364-1830 |
Title of 12(b) Security | Common Shares |
Trading Symbol | TRX |
Security Exchange Name | NYSEAMER |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 277,625,317 |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Auditor Name | DALE MATHESON CARR-HILTON LABONTE LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm ID | 1173 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 1015 15th Street N.W. |
Entity Address, Address Line Two | Suite 1000 |
Entity Address, City or Town | Washington |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 20005 |
City Area Code | 202 |
Local Phone Number | 572-3133 |
Contact Personnel Name | National Registered Agents, Inc. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Current assets | ||
Cash | $ 7,629 | $ 8,476 |
Amounts receivable | 3,140 | 2,540 |
Prepayments and other assets | 1,463 | 1,206 |
Inventories | 4,961 | 3,630 |
Total current assets | 17,193 | 15,852 |
Other long-term assets | 2,948 | 4,359 |
Mineral property, plant and equipment | 64,059 | 51,634 |
Total assets | 84,200 | 71,845 |
Current liabilities | ||
Amounts payable and accrued liabilities | 11,571 | 7,920 |
Withholding tax payable | 181 | |
Income tax payable | 1,081 | 436 |
Current portion of deferred revenue | 1,549 | 1,864 |
Current portion of lease liabilities | 65 | |
Derivative financial instrument liabilities | 3,544 | 6,849 |
Total current liabilities | 17,810 | 17,250 |
Lease liabilities | 36 | |
Deferred revenue | 178 | 621 |
Deferred income tax liability | 4,287 | |
Provision for reclamation | 833 | 2,815 |
Total liabilities | 23,144 | 20,686 |
Equity | ||
Share capital | 164,816 | 163,946 |
Share-based payments reserve | 8,807 | 6,825 |
Warrants reserve | 1,700 | 1,700 |
Accumulated deficit | (121,423) | (123,673) |
Equity attributable to shareholders | 53,900 | 48,798 |
Non-controlling interest | 7,156 | 2,361 |
Total equity | 61,056 | 51,159 |
Total equity and liabilities | $ 84,200 | $ 71,845 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Profit or loss [abstract] | ||
Revenue | $ 38,320 | $ 15,094 |
Cost of sales | ||
Production costs | (16,057) | (4,471) |
Royalty | (2,810) | (1,122) |
Depreciation | (1,259) | (122) |
Total cost of sales | (20,126) | (5,715) |
Gross profit | 18,194 | 9,379 |
General and administrative expenses | (7,628) | (8,920) |
Change in fair value of derivative financial instruments | 3,305 | (2,035) |
Foreign exchange gains | 212 | 167 |
Interest and other expenses | (1,707) | (477) |
Income (loss) before tax | 12,376 | (1,886) |
Income tax expense | (5,331) | (436) |
Net income (loss) and comprehensive income (loss) | 7,045 | (2,322) |
Net income (loss) and comprehensive income (loss) attributable to: | ||
Shareholders | 2,250 | (6,216) |
Non-controlling interest | 4,795 | 3,894 |
Net income (loss) and comprehensive income (loss) | $ 7,045 | $ (2,322) |
Consolidated Statements of In_2
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Parenthetical) - $ / shares | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Profit or loss [abstract] | ||
Basic earnings (loss) per share | $ 0.01 | $ (0.02) |
Diluted earnings (loss) per share | $ 0.01 | $ (0.02) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Issued capital [member] | Reserve of share-based payments [member] | Reserve For Warrants [Member] | Accumulated Deficit [Member] | Shareholderequity [Member] | Non-controlling interests [member] | Total |
Beginning balance, value at Aug. 31, 2021 | $ 158,129 | $ 5,680 | $ 1,606 | $ (117,457) | $ 47,958 | $ (1,533) | $ 46,425 |
Balance, number (in shares) at Aug. 31, 2021 | 254,870,556 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Shares issued for settlement of debts (Note 14) | $ 98 | 98 | 98 | ||||
Shares issued for settlement of debts, (In Shares) | 165,889 | ||||||
Shares issued for financing (Note 14) | $ 373 | 373 | 373 | ||||
Shares issued for financing, (In Shares) | 909,901 | ||||||
Shares issued for cash, net of share issuance costs (Note 14) | $ 3,867 | 3,867 | 3,867 | ||||
Shares issued for cash, net of share issuance costs, (In Shares) | 17,948,718 | ||||||
Stock options exercised (Note 15) | $ 258 | (111) | 147 | 147 | |||
Stock options exercised, (In Shares) | 450,000 | ||||||
Shares issued for share-based payments (Note 15) | $ 1,221 | (1,221) | |||||
Shares issued for share-based payments, (In Shares) | 1,801,120 | ||||||
Witholding tax impact on share-based compensation payments | (636) | (636) | (636) | ||||
Warrants issued (Note 16) | 94 | 94 | 94 | ||||
Share-based compensation expense (Note 15) | 3,113 | 3,113 | 3,113 | ||||
Net loss for the year | (6,216) | (6,216) | 3,894 | (2,322) | |||
Ending balance, value at Aug. 31, 2022 | $ 163,946 | 6,825 | 1,700 | (123,673) | 48,798 | 2,361 | 51,159 |
Balance, number (in shares) at Aug. 31, 2022 | 276,146,184 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Shares issued for cash, net of share issuance costs (Note 14) | $ 105 | 105 | 105 | ||||
Shares issued for cash, net of share issuance costs, (In Shares) | 200,000 | ||||||
Shares issued for share-based payments (Note 15) | $ 675 | (679) | (4) | (4) | |||
Shares issued for share-based payments, (In Shares) | 1,123,514 | ||||||
Share-based compensation expense (Note 15) | 2,697 | 2,697 | 2,697 | ||||
Witholding tax impact on restricted share units ("RSUs") | 54 | 54 | 54 | ||||
Shares issued for cashless exercise of options (Note 15) | $ 90 | (90) | |||||
Shares issued for cashless exercise of options, (In shares) | 155,619 | ||||||
Net income for the year | 2,250 | 2,250 | 4,795 | 7,045 | |||
Ending balance, value at Aug. 31, 2023 | $ 164,816 | $ 8,807 | $ 1,700 | $ (121,423) | $ 53,900 | $ 7,156 | $ 61,056 |
Balance, number (in shares) at Aug. 31, 2023 | 277,625,317 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Operating | ||
Net income (loss) | $ 7,045 | $ (2,322) |
Adjustments for items not involving cash: | ||
Non-cash items | 4,971 | 8,207 |
Non-cash cost of shares issuance | 565 | |
Changes in non-cash working capital: | ||
Increase in amounts receivable | (48) | (2,080) |
Increase in inventories | (868) | (2,157) |
Increase in prepaid and other assets | (96) | (874) |
Increase in amounts payable and accrued liabilities | 5,340 | 1,180 |
Increase in income tax payable | 983 | 436 |
Cash provided by operating activities | 17,327 | 2,955 |
Investing | ||
Exploration and evaluation assets and expenditures | (1,864) | 229 |
Proceeds from gold sales pre-adoption of amendments to IAS 16 | 535 | |
Purchase of mineral property, plant and equipment | (15,923) | (12,694) |
Increase in other long-term assets | (85) | (1,938) |
Cash used in investing activities | (17,872) | (13,868) |
Financing | ||
Proceeds from issuance of shares and warrants | 110 | 7,147 |
Issuance costs paid | (170) | (750) |
Withholding taxes on settlement of share-based compensation payments | (127) | (455) |
Lease payments | (115) | |
Cash (used in) provided by financing activities | (302) | 5,942 |
Net decrease in cash | (847) | (4,971) |
Cash at beginning of the period | 8,476 | 13,447 |
Cash at end of the period | 7,629 | 8,476 |
Income taxes paid in cash | $ 62 |
Nature of operations
Nature of operations | 12 Months Ended |
Aug. 31, 2023 | |
Nature Of Operations | |
Nature of operations | 1. Nature of operations TRX Gold Corporation (“TRX Gold” or the “Company”) was incorporated in the Province of Alberta on July 5, 1990 under the Business Corporations Act (Alberta). The Company’s principal business activity is the exploration, development and production of mineral property interests in the United Republic of Tanzania (“Tanzania”). On November 1, 2022, the Company declared commercial production on the 1,000+ tonne per day (“tpd”) process plant at its Buckreef Gold Project (“Buckreef”) in Tanzania. The Company’s registered office is 400 3 rd The Company’s common shares are listed on the Toronto Stock Exchange in Canada (TSX: TNX) and NYSE American in the United States of America (NYSE American: TRX). The Company is primarily focused on development and mining operations, exploring, and evaluating its mineral properties. The business of exploring and mining for minerals involves a high degree of risk. The underlying value of the mineral properties is dependent upon the existence and economic recovery of mineral resources and reserves, the ability to raise long-term financing to complete the development of the properties, government policies and regulations, and upon future profitable production or, alternatively, upon the Company’s ability to dispose of its interest on an advantageous basis; all of which are uncertain. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Basis of preparation | 2. Basis of preparation a) Statement of compliance The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements were approved by the Board of Directors of the Company on November 29, 2023. b) Basis of presentation and measurement All amounts in these consolidated financial statements are presented in United States dollars and rounded to the nearest thousand unless otherwise stated. Reference herein of $ or USD is to United States dollars and C$ or CAD is to Canadian dollars. These consolidated financial statements have been prepared on a going concern basis under the historical cost convention, except for certain financial assets and liabilities which are measured at fair value as disclosed in Note 21. c) Comparative figures Certain comparative amounts have been restated to conform to current period’s presentation. The reclassification in presentation resulted in the following impact on the Consolidated Statement of Income (Loss) Comprehensive Income (Loss) for the year ended August 31, 2022: Year ended August 31, 2022 Schedule of statement of income Reported at Reclassification Restated at Financial instrument related cost and other (2,328 ) 2,328 - Loss on derivative financial instruments - (2,035 ) (2,035 ) Reclamation expense (134 ) 134 - Loss on disposal of assets (36 ) 36 - Interest and other expenses (14 ) (463 ) (477 ) Net loss and comprehensive loss $ (2,322 ) $ - $ (2,322 ) The reclassification in presentation resulted in the following impact on the Consolidated Statement of Financial Position as at August 31, 2022: Schedule of financial position Reported at Reclassification Restated at Amounts receivable $ 40 $ 2,500 $ 2,540 Other receivables 2,500 (2,500 ) - |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Aug. 31, 2023 | |
Significant Accounting Policies | |
Significant accounting policies | 3. Significant accounting policies a) Basis of consolidation The consolidated financial statements are prepared by consolidating the financial statements of the Company and its subsidiaries as defined in IFRS 10, Consolidated Financial Statements The material subsidiaries whose financial information is consolidated in these financial statements of the Company include: Schedule of consolidated financial statement Country of Ownership interest as at August 31, incorporation 2023 2022 TRX Gold Tanzania Limited Tanzania 100 % 100 % Tancan Mining Co. Limited Tanzania 100 % 100 % Buckreef Gold Company Ltd. Tanzania 55 % 55 % In preparing the consolidated financial statements, all inter-company balances and transactions between entities in the group, including any unrealized profits or losses, have been eliminated. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s equity therein. Non-controlling interests consist of the fair value of net assets acquired at the date of the original business combination and the non-controlling interests’ share of changes in equity since the date of the business combination. Total comprehensive profit or loss is attributed to non-controlling interests even if this results in non-controlling interests having a deficit balance. b) Functional and presentation currency The functional currency of each of the Company’s entities is measured using the currency of the primary economic environment in which that entity operates. The functional currency of all entities within the group is the USD, which is also the Company’s presentation currency. Foreign currency transactions are translated into the functional currency at exchange rates prevailing at the transaction date. Foreign currency monetary items are translated at period-end exchange rates. Differences arising on settlement of foreign currency transactions or translation of monetary items are recognized in profit or loss. Non-monetary items measured at historical cost continued to be carried at the exchange rates at the dates of the transactions. Non-monetary items measured at fair value are translated using the exchange rates at the date when the fair value is determined. Differences arising on translation of non-monetary items are treated in line with the recognition of the change in fair value of such an item. c) Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, and short-term deposits with an original maturity of three months or less, which are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value. d) Inventories Inventories include ore stockpile, gold in-circuit, gold doré and supplies inventory. The value of production inventories includes direct production costs, mine-site overheads, depreciation on property, plant and equipment used in the production process, and depreciation of capitalized stripping costs and mineral properties, incurred to bring the inventory to their current point in the processing cycle. General and administrative costs not related to production are excluded from inventories. Inventories are carried at the lower of cost and net realizable value (“NRV”). NRV is determined with reference to estimated selling prices, less estimated costs of completion and selling costs. If carrying value exceeds net realizable value, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exists. · Ore stockpile represents unprocessed ore that has been mined and is available for future processing. Ore stockpile is measured by estimating the number of tonnes added and removed from the stockpile through physical surveys, assay data and an estimated metallurgical recovery rate. Costs are added to ore stockpile based on current mining costs and are removed at the average costs per ounce of gold in the stockpile. In connection with the successful processing plant expansion which resulted in higher plant throughput and gold production, the Company changed the method of estimating the cost of its ore stockpiles effective September 1, 2022. The updated methodology estimates the cost of ore stockpiles based on estimated recoverable ounces of gold in ore stockpiles whereby the previous methodology was based on tonnes of ore in stockpiles. The Company believes this methodology better matches revenue and expenses and has been applied prospectively. · Gold in-circuit represents material that is currently being processed to extract the gold into a saleable form. The amount of gold in-circuit is determined by assay values and by measure of the various gold bearing materials in the recovery process. Gold in-circuit is carried at the average of the beginning inventory and the costs of ore material fed into the processing stream plus in-circuit conversion costs. · Gold doré represents saleable gold in the form of doré bars that have been poured. Included in the costs are the costs of mining and processing activities, including mine-site overheads and depreciation. · Supplies inventories include equipment parts and other consumables required in the mining and processing activities and are valued at the lower of average cost and net realizable value. Provision for obsolescence is determined by reference to specific inventory items identified. e) Mineral property, plant and equipment Mineral property, plant and equipment (“PP&E”) are carried at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of PP&E consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Where an item of PP&E comprises major components with different useful lives, the components are accounted for as separate items of PP&E. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss in the period in which they occur. Depreciation PP&E are depreciated over their useful lives commencing from the time the respective asset is ready for use. The Company uses the units-of-production method (“UOP") or straight-line basis according to the pattern in which the asset’s future economic benefits are expected to be consumed. The UOP method results in a depreciation charge based on the recoverable ounces of gold produced. Depreciation for each class of PP&E is calculated using the following method: Schedule of depreciation rate for property, plant and equipment Class of PP&E Method Years Machinery and equipment Straight-line 5 8 Automotive Straight-line 5 Computer equipment and software Straight-line 3 8 Leasehold improvements Straight-line 5 Processing plant UOP n/a Mineral properties UOP n/a Management annually reviews the estimated useful lives, residual values and depreciation methods of the Company’s PP&E and also when events and circumstances indicate that such a review should be undertaken. Changes to estimated useful lives, residual values or depreciation methods resulting from such reviews are accounted for prospectively. In connection with the successful commissioning of the processing plant expansion, the Company reviewed the estimated useful life of its processing plant assets and determined the processing plant can be utilized to process all ore from Buckreef, although capital expenditures may be required in the future to expand the capacity of the plant or accommodate various types of ore. With regular and scheduled maintenance, the Company expects the processing plant to be utilized throughout the mine life of Buckreef. As a result, the processing plant is depreciated using the UOP method in the current year instead of using the straight-line method that was previously applied. This change in accounting estimate has been applied prospectively. An item of PP&E is derecognized upon disposal, when classified as held for sale or when no future economic benefits are expected to arise from the continued use of the asset. The difference between the net proceeds from disposal, if any, and the carrying amount of the asset, is recognized in the profit or loss. i) Construction in progress All expenditures undertaken in the development, construction, installation and/or completion of mine production facilities to extract, treat, gather, transport and store of minerals are capitalized and initially classified as “Construction in progress”. Costs incurred on properties in the development stage are included in the carrying amount of “Construction in progress”. A property is classified as a development property when a mine plan has been prepared and a decision is made to commercially develop the property. Development stage expenditures are costs incurred to obtain access to proven and probable mineral reserves or mineral resources and provide facilities for extracting, treating, gathering, transporting, and storing the minerals. All expenditures incurred from the time the development decision is made until when the asset is ready for its intended use are capitalized. Construction in progress assets are not depreciated until they are completed and available for use. Upon the commencement of commercial production, all related assets included in “Construction in progress” are reclassified to PP&E. Determination of commencement of commercial production is a complex process and requires significant assumptions and estimates. The commencement of commercial production is defined as the date when the mine is capable of operating in the manner intended by management. The Company considers primarily the following factors, among others, when determining the commencement of commercial production: · All major capital expenditures to achieve a consistent level of production and desired capacity have been incurred; · A reasonable period of testing of the mine plant and equipment has been completed; · A predetermined percentage of design capacity of the mine and mill has been reached; and · Required production levels, grades and recoveries have been achieved. When a mine development project moves into the commercial production stage, the capitalization of mine construction costs ceases and subsequent costs incurred are either regarded as inventory or expensed, except for capitalizable costs related to mining asset additions or improvements, or mineable reserve development. It is also at this point that depreciation commences. ii) Deferred stripping costs In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore from which minerals can be extracted economically. The process of mining overburden and waste materials to access ore from which minerals can be extracted economically is referred to as stripping. Stripping costs incurred in the production phase are accounted for as costs of the inventory produced during the period that the stripping costs are incurred, unless these costs are expected to provide a future economic benefit to an identifiable component of the ore body which will be extracted in the future. Components of the ore body are based on the distinct development phases identified by the mine planning engineers when determining the optimal development plan for the open pit. Capitalized stripping costs are depleted on a units-of-production based on contained ounces of gold mined. iii) Exploration and evaluation expenditures All direct costs related to the acquisition and exploration and development of specific properties are capitalized as incurred. Any cost incurred prior to obtaining the legal right to explore a mineral property are expensed as incurred. Overhead costs directly related to exploration are capitalized and allocated to mineral properties explored. If a property is abandoned, sold or impaired, an appropriate charge will be made to the income statement at the date of such impairment. The Company reviews the carrying value of capitalized exploration and evaluation expenditures when events or changes in circumstances indicate that the carrying value may not be recoverable. Examples of such events or changes in circumstances are as follows: · The period for which the Company has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; · Substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; · Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and · Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. If the carrying value exceeds fair value, the property will be written down to fair value with an impairment charged to the income statement in the period of impairment. An impairment is also recorded when management determines that it will discontinue exploration or development on a mineral property or when exploration rights or permits expire. Once an economic viability has been determined for a property and a decision to proceed with development has been approved, exploration and evaluation expenditures previously capitalized are first tested for impairment and then classified as mineral properties. f) Impairment of non-financial assets At each reporting date, the Company reviews the carrying amounts of its PP&E to determine whether there is an indication that those assets may be impaired. If any such indicators exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where an asset does not generate cash flows independent from other assets, the Company estimates the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of the asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount and an impairment loss is recognized immediately in profit or loss. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. g) Leases At the commencement date of a lease, the Company recognizes a lease payment liability, which is the discounted value of future lease payments using the lease-specific incremental borrowing rate, and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset). The Company separately recognizes interest expense on the lease liability and depreciation expense on the right-of-use asset. The Company recognizes right-of-use assets at the value of the corresponding lease liability, adjusted for any accrued and prepaid lease payments, and less any impairment provisions. Right-of-use assets are capitalized at the commencement date of the lease and comprise of the initial lease liability and initial indirect costs incurred by the Company when entering into the lease less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term of the underlying asset. Cash flows relating to the reduction of lease liabilities have been presented as cash used in financing activities. The Company has also elected to classify leases which end within 12 months of the date of initial application as short term leases. The lease payments associated with such leases are recognized as an expense in the income statement. h) Decommissioning, restoration and similar liabilities The Company recognizes provisions for legal and constructive obligations, including those associated with the reclamation of PP&E, when there is a present obligation as a result of exploration, development and production activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of removing facilities, abandoning sites and restoring the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date, based on current legal or constructive obligation. Upon initial recognition of the liability, the corresponding asset retirement obligation is added to the carrying amount of the related asset and the cost is amortized as an expense over the economic life of the asset using UOP. Following the initial recognition of the asset retirement obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to the discount rate and amount or timing of the underlying cash flows required to settle the obligation. Future restoration costs are reviewed at each reporting period. i) Taxation Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to taxation authorities. Current income tax is calculated on the basis of the law enacted or substantively enacted at the reporting date in the countries where the Company and its subsidiaries operate and generate taxable income. Deferred income tax Deferred income tax is recognized in accordance with the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements at the end of each reporting period.The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. Deferred income tax liabilities are recognized for all taxable temporary differences, except: · Where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and losses, to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and losses can be utilized except: · Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred income tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply when the asset is realized or the liability is settled based on tax rates and laws that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. j) Financial instruments i) Financial assets Financial assets are classified as either financial assets at fair value through profit or loss (“FVTPL”), amortized cost, or fair value through other comprehensive income (“FVOCI”). The Company determines the classification of its financial assets at initial recognition. a. FVTPL Financial assets are classified at FVTPL if they do not meet the criteria to be classified at amortized cost or FVOCI. Gains or losses on these items are recognized in net profit or loss. b. Amortized cost Financial assets are classified at amortized cost if both of the following criteria are met and the financial assets are not designated as at FVTPL: (i) the object of the Company’s business model for these financial assets is to collect their contractual cash flows, and (ii) the asset’s contractual cash flows represent “solely payments of principal and interest”. A provision is recorded when the estimated recoverable amount of the financial asset is lower than its carrying amount. At each reporting period, the Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. When sold or impaired, any accumulated fair value adjustments previously recognized are included in profit or loss. c. FVOCI For equity securities that are not held for trading, the Company can make an irrevocable election at initial recognition to classify the instruments at FVOCI with all subsequent changes in fair value being recognized in other comprehensive income (“OCI”). This election is available for each separate investment. For financial assets classified at FVOCI, fair value changes are recognized in OCI while dividends are recognized in profit or loss. On disposal of the financial asset, the cumulative fair value change remains in OCI and is not recycled to net profit or loss. d. Reclassifications Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Company changes its business model for managing its financial assets. ii) Derivative warrant liabilities Share warrants (not including compensation warrants) are considered a derivative as they are not indexed solely to the Company’s own stock. During the year ended August 31, 2021, the Company issued convertible debentures with detachable warrants for the Company’s common shares. The warrants are classified as a derivative financial liability as they are potentially exercisable in cash or on a cashless basis resulting in a variable number of shares being issued. The warrants were initially recognized at fair value and subsequently measured at FVTPL. The Company uses the Black-Scholes Option Pricing Model to estimate their fair values at each reporting date. iii) Agent warrants and financing warrants Warrants issued to agents in connection with equity financing are recorded at fair value and charged to share issuance costs associated with the offering with an offsetting credit to warrants reserve within shareholders’ equity. Warrants included in units offered to subscribers in connection with financings are valued using the residual value method whereby proceeds are first allocated to the fair value of common shares and the excess if any, allocated to warrants. iv) Gold zero-cost collars During the year ended August 31, 2023, the Company entered into a series of gold zero-cost collar contracts to be settled from April 2023 to August 2023. On initial recognition, the Company designated gold zero-cost collars to be derivative financial instruments and measured at FVTPL. The gold zero-cost collars are initially recognized at fair value and subsequently measured at FVTPL. Transaction costs associated with financial instruments, carried at FVTPL, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The Company has classified and measured its financial instruments as described below: · Cash, amounts receivables and other long-term assets are classified as and measured at amortized cost; · Amounts payable and accrued liabilities are classified as and measured at amortized cost; and · Derivative assets and liabilities include derivative financial instruments that do not qualify as hedges, or are not designated as hedges, and are classified as FVTPL. k) Share-based payments Share-based payment transactions The Company has a number of equity-settled share-based compensation plans under which the Company’s directors, employees and consultants receive a portion of their remuneration in the form of equity instruments for services rendered. In certain cases, the Company settles statutory withholding tax obligations in cash, based on the value of the Company’s common shares, when vested equity instruments are settled. Where the value of goods or services received by the Company in exchange for equity instruments issued cannot be specifically measured, they are measured at fair value of the equity instrument granted. The Company’s share-based compensation plans are comprised of the following: Stock options Share-based compensation expense is recognized over the stock option vesting period based on the number of options estimated to vest. Management estimates the number of awards likely to vest at the time of a grant and at each reporting period up to the vesting date. On exercise of the vested options, shares are issued from treasury. The grant-date fair value of stock options is estimated using the Black-Scholes Option Pricing Model and expensed on a straight-line basis using the graded vesting method over the vesting period. The cumulative expense which is recognized for equity-settled transactions at each reporting date until the vesting date reflects the Company’s best estimate of the number of equity instruments that will ultimately vest. The profit or loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and the corresponding amount is represented in share-based payment reserve. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied provided that all other performance and/or service conditions are satisfied. Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at the date of modification. Restricted share units (“RSUs”) Each RSU has a value equal to one TRX Gold common share. RSUs generally vest in common shares of the Company. The after-tax value of the award is settled by issuance of common shares from treasury upon vesting. The grant-date fair value of RSUs is measured using the market value of the underlying shares at the date of grant and expensed on a straight-line basis using the graded vesting method over the vesting period as a component of general and administrative expenses and cost of sales, depending on the grantee. l) Revenue recognition Revenue consists of proceeds received or expected to be received for the Company’s principal products, gold and silver doré. Revenue is recognized when title to gold and silver passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract, usually upon delivery of the product to the buyer. Product pricing is determined under the sales agreements which are referenced against active and freely traded commodity markets, for example, the London Bullion Market for both gold and silver, in an identical form to the product sold. Gold and silver doré produced from Buckreef is sold at the prevailing spot market price based on London Fix Prices depending on the sales contract. In addition to selling refined bullion at spot, the Company has doré purchase agreements in place with a financial institution. Under the agreements, the Company has the option to sell approximately 90% of the gold and silver contained in doré bars prior to the completion of refining by the third-party refiner. Revenue is recognized when the Company has provided irrevocable instructions to the refiner to transfer to the buyer the refined ounces sold upon final processing outturn, and when payment of the purchase price for the purchased doré or bullion has been made in full by the purchaser. No judgement is involved in revenue recognition as revenue is recognized when payment has been sent by the buyer and the product has been effectively delivered to the customer with no further involvement required of the Company. m) Earnings (loss) per share The basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the year. The weighted average number of common shares outstanding during the year includes vested common shares awards which have yet to be issued as little to no consideration is required to exercise. The diluted earnings (loss) per share reflects the potential dilution of common share equivalents, such as outstanding common share awards, stock options, RSUs and share purchase warrants in the weighted average number of common shares outstanding during the year, if dilutive. n) Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or if they are subject to common control or are controlled by parties that have significant influence over the entity. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount, being the amount agreed by the parties to the transaction. o) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. p) New accounting pronouncements The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s consolidated financial statements that the Company reasonably expects will have an impac |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Aug. 31, 2023 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant accounting judgments, estimates and assumptions | 4. Significant accounting judgments, estimates and assumptions The preparation of these consolidated financial statements requires management to make judgements and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its judgements and estimates in relation to assets, liabilities, revenue and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgements and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. The most significant estimates relate to the appropriate depreciation rate for property, plant and equipment, the valuation of warrant liability, the recoverability of other receivables, the valuation of deferred income tax amounts, the impairment on mineral properties and deferred exploration and property, plant and equipment and the calculation of share-based payments. The most significant judgements relate to the recognition of deferred tax assets and liabilities and asset retirement obligations, the determination of the economic viability of a project or mineral property, the date of commencement of commercial production, and the determination of functional currencies. a) Production Start Date Management assesses the stage of each mine development project to determine when a mine moves into the production stage. The criteria used to assess the start date of a mine are determined based on the unique nature of each mine development project. The Company considers various relevant criteria to assess when the mine is substantially complete, ready for its intended use and moves into the production phase. Some of the criteria include, but are not limited to, the following: · A significant level of capital expenditures compared to construction cost estimates are complete, · Ability to produce gold in saleable form within specifications has been achieved, · Reasonable period for testing has been completed, and · Reasonable level of ongoing production based on mill throughput, recovery rates and mill availability. On November 1, 2022, the Company declared commercial production for the 1,000+ tpd processing plant at Buckreef after successful construction, commissioning and ramp-up of processing to a steady state throughput of 1,000+ tpd. The processing plant was running consistently at or above nameplate capacity since October 2022 with gold recoveries exceeding 90%. All major construction activities were completed and Buckreef demonstrated its ability to sustain ongoing production levels. b) Exploration and evaluation assets and expenditures The application of the Company’s accounting policy for exploration and evaluation assets and expenditures requires judgment to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves, and to determine whether indicators of impairment exist including factors such as, the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further exploration and evaluation of resource properties are budgeted and evaluation of the results of exploration and evaluation activities up to the reporting date. c) Units-of-Production Management estimates recoverable proven and probable mineral reserves in determining the depreciation and amortization of certain mineral property, plant and equipment that is expected to be used for the duration of the mine life. This results in a depreciation charge proportional to the recovery of the anticipated ounces of gold. The life of the asset is assessed annually and considers its physical life limitations and present assessment of economically recoverable reserves of the mine property at which the asset is located. The calculations require the use of estimates and assumptions, including the amount of recoverable proven and probable mineral reserves. The Company’s units of production calculations are based on recovered ounces of gold poured. d) Stripping Costs in the Production Phase of a Surface Mine Significant judgement is required to distinguish between development stripping and production stripping and to distinguish between the production stripping that relates to the extraction of inventory and that which relates to the creation of a stripping activity asset. The Company identifies the separate components of the ore bodies for its mining operations. An identifiable component is a specific volume of the ore body that is made more accessible by the stripping activity. Significant judgement is required to identify and define these components, and also to determine the expected volumes of waste to be stripped and ore to be mined in each of these components. The assessment is based on the information available in the mine plan. The mine plans and, therefore, the identification of components, may change for a number of reasons as new information becomes available. These include, but are not limited to, the geographic location and geological characteristics of the ore body, and/or financial considerations. Judgement is also required to identify a suitable production measure to be used to allocate production stripping costs between inventory and any stripping activity asset. Management estimates the cost of deferred stripping activities as the excess waste material moved above the average strip ratio to provide access to further quantities of ore that is expected to be mined in future periods. Furthermore, judgements and estimates are also used to apply the units-of-production method in determining the depreciable lives of stripping activity assets. e) Provision for reclamation Management assesses its mine restoration and rehabilitation provision each reporting period. Significant estimates and assumptions are made in determining the provision for mine rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include estimates of the extent, the timing and the cost of rehabilitation activities, technological changes, regulatory change, cost increases, and changes in discount rates. Those uncertainties may result in actual expenditures differing from the amounts currently provided. The provision at the reporting date represents management’s best estimate of the present value of the future rehabilitation costs required. Changes to estimated future costs are recognized in the consolidated statement of financial position by adjusting the rehabilitation asset and liability. f) Impairment of Non-Current Assets Non-current assets are tested for impairment if there is an indicator of impairment. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made which is considered to be the higher of the fair value less costs to sell and value in use. These assessments require the use of estimates and assumptions such as long-term commodity prices, discount rates, future capital requirements, and operating performance. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s-length transaction between knowledgeable and willing parties. Fair value for mineral assets is generally determined as the present value of estimated future cash flows arising from the continued use of the asset. Cash flows are discounted by an appropriate discount rate to determine the net present value. Management has assessed its CGUs as being all sources of mill feed through a central mill, which is the lowest level for which cash inflows are largely independent of other assets. g) Taxes Management is required to make estimations regarding the tax basis of assets and liabilities and related income tax assets and liabilities and the measurement of income tax expense and indirect taxes. This requires management to make estimates of future taxable profit or loss, and if actual results are significantly different than its estimates, the ability to realize any deferred tax assets or discharge deferred tax liabilities on the Company’s consolidated statement of financial position could be impacted. |
Amounts receivable
Amounts receivable | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Amounts receivable | 5. Amounts receivable Schedule of summary of receivables August 31, 2023 August 31, 2022 Receivable from precious metal sales $ 488 $ - Sales tax receivable (1) 5,554 4,359 Prepaid gold purchase receivable (Note 10) - 2,500 Other 46 40 Other receivable 6,088 6,899 Less: Long-term portion (2,948 ) (4,359 ) Total amounts receivable $ 3,140 $ 2,540 (1) Sales tax receivables consist of harmonized services tax and value added tax ("VAT") due from Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against other taxes due to the Tanzania Revenue Authority ("TRA"). The Company has historically experienced delays in receiving payment or confirmation of offset against other taxes. The Company is in communication with the TRA and there is an expectation for either cash payments or offsetting of VAT receivable against other taxes in the future. VAT which the Company does not expect to recover within the next 12 months has been classified as long-term assets. Below is an aged analysis of the Company’s amounts receivable: Schedule of aged analysis of receivables August 31, 2023 August 31, 2022 Less than 1 month $ 573 $ 2,510 1 to 3 months 1,055 30 Over 3 months 1,512 - Total amounts receivable $ 3,140 $ 2,540 As at August 31, 2023, $ 0.3 0 2.3 1.3 |
Prepayments and other assets
Prepayments and other assets | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Prepayments and other assets | 6. Prepayments and other assets Schedule of prepayments and other assets August 31, 2023 August 31, 2022 Prepaid expenses and deposits $ 796 $ 699 Deferred financing costs (1) 667 507 Total prepayments and other assets $ 1,463 $ 1,206 (1) Consists of $0.5 million in commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole discretion, has the right to sell up to $10 million of its common shares over a 36-month period and $0.2 million in deferred financing costs related to an At-the-Market Offering Agreement entered on May 12, 2023. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Inventories | 7. Inventories Schedule of inventory August 31, 2023 August 31, 2022 Ore stockpile $ 3,361 $ 2,643 Gold in-circuit 689 210 Gold doré 52 253 Total precious metals inventories 4,102 3,106 Supplies 859 524 Total inventories $ 4,961 $ 3,630 |
Mineral property, plant and equ
Mineral property, plant and equipment | 12 Months Ended |
Aug. 31, 2023 | |
Mineral Property Plant And Equipment | |
Mineral property, plant and equipment | 8. Mineral property, plant and equipment Schedule of mineral property, plant and equipment Construction Exploration (5) Mineral Processing Machinery (3) Other (4) Total Cost As at August 31, 2021 $ - $ 38,618 $ - $ 3,279 $ 954 $ 82 $ 42,933 Additions 7,097 1,945 - 3,797 507 61 13,407 Disposals - - - - (65 ) - (65 ) Transfer from exploration and evaluation assets (3) 40,563 (40,563 ) - - - - - Reclassification to other long-term asset (2,421 ) - - - - - (2,421 ) As at August 31, 2022 $ 45,239 $ - $ - $ 7,076 $ 1,396 $ 143 $ 53,854 Additions - 1,864 4,951 9,233 223 213 16,484 Adjustment to reclamation provision - - (2,234 ) - - - (2,234 ) Transfers (1) (45,239 ) - 38,485 6,754 5 (5 ) - As at August 31, 2023 $ - $ 1,864 $ 41,202 $ 23,063 $ 1,624 $ 351 $ 68,104 Accumulated depreciation As at August 31, 2021 $ - $ - $ - $ 1,340 $ 473 $ 20 $ 1,833 Depreciation - - - 226 175 15 416 Disposals - - - - (29 ) - (29 ) As at August 31, 2022 $ - $ - $ - $ 1,566 $ 619 $ 35 $ 2,220 Depreciation - - 1,261 210 209 145 1,825 Transfers (1) - - (362 ) 362 - - - As at August 31, 2023 $ - $ - $ 899 $ 2,138 $ 828 $ 180 $ 4,045 Net book value As at August 31, 2022 $ 45,239 $ - $ - $ 5,510 $ 777 $ 108 $ 51,634 As at August 31, 2023 $ - $ 1,864 $ 40,303 $ 20,925 $ 796 $ 171 $ 64,059 (1) On November 1, 2022, Buckreef achieved commercial production at which point development expenditures were subject to depreciation. (2) Represents exploration and evaluation expenditures related to the Eastern Porphyry and Anfield deposits on the Buckreef property. (3) Includes automotive and computer equipment and software. (4) Includes automotive, leasehold improvements and right-of-use assets. (5) During the year ended August 31, 2022, Buckreef transitioned from an exploration and evaluation asset under IFRS 6, Exploration for and Evaluation of Mineral Resources Property, Plant and Equipment The continuity of expenditures for exploration and evaluation asset is as follows: Schedule of expenditures of the exploration and evaluation asset Buckreef Balance, August 31, 2021 $ 38,618 Exploration expenditures: Camp, field supplies and travel 172 License fees and exploration and field overhead 861 Geological consulting and field wages 67 Trenching and drilling 550 Mine design 227 Mining and processing costs 431 Gold sales (535 ) Payments to STAMICO as per Joint Venture agreement 172 Balance, November 30, 2021 $ 40,563 Reclassification to mineral property, plant and equipment (40,563 ) Balance, August 31, 2022 $ - Exploration expenditures: Geological consulting 529 Personnel costs 385 Trenching and drilling 921 Others 29 Balance, August 31, 2023 $ 1,864 |
Income tax
Income tax | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Income tax | 9. Income tax The Company’s provision for income taxes differs from the amount computed by applying the combined federal and provincial income tax rates to income (loss) before income taxes as a result of the following: Schedule of provisional income tax rates For the year ended August 31, 2023 2022 Combined basic Canadian federal and provincial statutory income tax rates including surtaxes 26.50 % 26.50 % Statutory income tax rates applied to accounting income $ 3,280 $ (637 ) Increase (decrease) in provision for income taxes: Foreign tax rates different from statutory rate 50 322 Permanent differences and other items 1,222 1,669 Benefit of tax losses not recognized 779 (918 ) Total provision for income taxes $ 5,331 $ 436 The enacted tax rates in Canada of 26.50 26.50 30 30 The provision for income taxes consist of the following: Schedule of provision for income taxes August 31, 2023 August 31, 2022 Current income taxes $ 1,044 $ 436 Deferred income taxes 4,287 - Total provision for income taxes $ 5,331 $ 436 The tax effects of significant temporary differences which would comprise deferred income tax assets and liabilities at August 31, 2023 and 2022 are as follows: Schedule of deferred income tax assets and liabilities Deferred Income Tax Liabilities Mineral properties Total At August 31, 2021 $ (12,423 ) $ (12,423 ) Charged to the consolidated statement of comprehensive income (loss) 2,373 2,373 At August 31, 2022 (10,050 ) (10,050 ) Charged to the consolidated statement of comprehensive income (1,438 ) (1,438 ) At August 31, 2023 $ (11,488 ) $ (11,488 ) Deferred Income Tax Assets Non-capital losses Total At August 31, 2021 $ 12,423 $ 12,423 Charged to the consolidated statement of comprehensive loss (2,373 ) (2,373 ) At August 31, 2022 10,050 10,050 Charged to the consolidated statement of comprehensive income (2,849 ) (2,849 ) At August 31, 2023 $ 7,201 $ 7,201 Net deferred tax assets (liabilities) As at August 31, 2022 $ - $ - As at August 31, 2023 $ (4,287 ) $ (4,287 ) The carrying value of Buckreef’s Mineral Property, Plant and Equipment is higher than their tax written down values due to historical mining incentives in Tanzania and accelerated depreciation for tax purposes. The taxable temporary difference between the carrying value of Mineral Property, Plant and Equipment and its tax basis in excess of available tax loss carry-forwards resulted in a deferred tax liability. The following temporary differences have not been recognized in the Company’s consolidated financial statements: Schedule of temporary differences, unused tax losses and unused tax credits August 31, 2023 August 31, 2022 Non-capital losses $ 88,377 $ 120,528 Property, plant and equipment 149 89 Capital losses - 3 Financing costs 1,414 - Total unrecognized temporary differences $ 89,940 $ 120,620 At August 31, 2023, the Company had unrecognized non-capital tax loss carry-forwards of $ 88.4 120.6 Schedule of non capital tax losses Canada Tanzania (1) 2026 $ 1,265 $ - 2027 1,026 - 2028 1,117 - 2029 1,454 - 2030 1,055 - 2031 1,757 - 2032 1,845 - 2033 1,738 - 2034 1,622 - 2035 1,466 - 2036 1,515 - 2037 2,118 - 2038 2,760 - 2039 3,506 - 2040 5,426 - 2041 5,934 - 2042 4,328 - 2043 4,078 - No expiry - 44,367 Total non-capital tax losses $ 44,010 $ 44,367 (1) The maximum amount of tax losses that a business can utilize in Tanzania is 70% of its taxable profit for the current year. The remaining 30% of taxable profit is subject to a statutory tax rate of 30%. As a result, Buckreef's current income tax is calculated at an effective tax rate of 9% until Buckreef's tax loss carryforwards are fully utilized. Tax losses in Tanzania can only be utilized by the entity to which the tax losses relate to. At August 31, 2023, $nil 0 0 |
Deferred revenue
Deferred revenue | 12 Months Ended |
Aug. 31, 2023 | |
Deferred Revenue | |
Deferred revenue | 10. Deferred revenue On August 11, 2022, the Company entered into a $ 5 The Company drew down the first tranche of $2.5 million in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters. 1 1.5 The Agreement has been accounted for as a contract in accordance with IFRS 15, Revenue from Contracts with Customers Schedule of deferred revenue liability Amount As at August 31, 2021 $ - Drawdown 2,500 Deferred transaction costs (15 ) As at August 31, 2022 $ 2,485 Drawdown 1,000 Accretion of deferred revenue 454 Transaction costs expensed 15 Revenue recognized (2,227 ) As at August 31, 2023 $ 1,727 Schedule of deferred revenue For the year ended August 31, 2023 2022 Current portion of deferred revenue $ 1,549 $ 1,864 Deferred revenue 178 621 Balance at end of year $ 1,727 $ 2,485 |
Derivative financial instrument
Derivative financial instrument liabilities | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Financial Instrument Liabilities | |
Derivative financial instrument liabilities | 11. Derivative financial instrument liabilities Schedule of derivative financial instrument liabilities August 31, 2023 August 31, 2022 Derivative warrant liabilities $ 3,544 $ 6,849 Total derivative financial instrument liabilities $ 3,544 $ 6,849 a) Derivative warrant liabilities Schedule of derivative warrant liabilities Amount As at August 31, 2021 $ 2,149 Warrants issued January 26, 2022 2,665 Change in fair value 2,035 As at August 31, 2022 $ 6,849 Change in fair value (3,305 ) As at August 31, 2023 $ 3,544 Derivative warrant liabilities of $ 3.5 Fair values of derivative warrant liabilities were calculated using the Black-Scholes Option Pricing Model with the following assumptions: Schedule of assumptions fair value of derivative warrant liabilities August 31, 2023 August 31, 2022 Share price $0.39 $0.48 Risk-free interest rate 4.43 4.66 % 3.32 3.44 % Dividend yield 0 % 0 % Expected volatility 52 % 55 60 % Remaining term (in years) 2.5 3.4 0.9 4.4 The fair value is classified as level 3 as expected volatilities is determined using adjusted historical volatilities and were therefore not an observable input. Sensitivity analysis If expected volatility, the significant unobservable input, had been higher or lower by 10% and all other variables were held constant, net income and net assets for the year ended August 31, 2023 would increase or decrease by: Schedule of net income and net assets August 31, 2023 10% change in expected volatilities Increase Decrease (Loss) income $ (840 ) $ 819 b) Gold zero-cost collars In March 2023, the Company entered into a series of gold zero-cost collar contracts for 1,800 gold ounces per month totalling 9,000 gold ounces to be settled from April 2023 to August 2023, at a maximum and minimum gold price of $2,030 and $1,825 per gold ounce, respectively. 9,000 no |
Provision for reclamation
Provision for reclamation | 12 Months Ended |
Aug. 31, 2023 | |
Provision For Reclamation | |
Provision for reclamation | 12. Provision for reclamation The Company's reclamation and closure obligations relates to the cost of removing and restoring the Buckreef Gold Project in Tanzania. Significant reclamation and closure activities include land rehabilitation, demolition of buildings and mine facilities, ongoing care and maintenance and other costs. This estimate depends on the development of an environmentally acceptable mine closure plan. A reconciliation for reclamation expenses is as follows: Schedule of reconciliation for reclamation expenses For the year ended August 31, 2023 2022 Balance at beginning of year $ 2,815 $ 2,681 Decrease in estimate for provision for reclamation (2,234 ) - Accretion of provision for reclamation (Note 24) 252 134 Balance at end of year $ 833 $ 2,815 The provision for reclamation was estimated using the following inputs and assumptions: a) Total undiscounted amount of future reclamation costs was estimated to be $ 4.1 3.4 b) Risk-free rate of 13 5 c) Inflation rate of 4 4 d) Weighted average expected timing of cash outflows of 19 18 |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Earnings (loss) per share | 13. Earnings (loss) per share Schedule of earnings loss per share For the year ended August 31, 2023 2022 Net income (loss) attributable to shareholders $ 2,250 $ (6,216 ) Weighted average number of common shares for basic EPS (1) 282,401,603 266,999,724 Effect of dilutive stock options, warrants, RSUs and share awards 6,127,725 - Weighted average number of common shares for diluted EPS (1) 288,529,328 266,999,724 (1) The weighted average number of common shares for basic and diluted EPS include vested, but unissued, common shares relating to common share awards. For the year ended August 31, 2023, the weighted average number of common shares for diluted EPS excluded 10.5 39 7.4 42 |
Share Capital
Share Capital | 12 Months Ended |
Aug. 31, 2023 | |
Share Capital | |
Share Capital | 14. Share Capital i) Activity during the year ended August 31, 2023 On May 17, 2023, the Company sold 200,000 0.01 ii) Activity during the year ended August 31, 2022 On September 30, 2021, the Company issued 165,889 98 98 On January 20, 2022, the Company entered into a purchase agreement, where the Company, in its sole discretion, will have the right from time to time over a 36-month period to sell up to $ 10 909,901 373 On January 26, 2022, the Company completed the sale of 17,948,718 17,948,718 The common shares and warrants were issued at $0.39 for each common share and a purchase warrant with the right of each whole warrant to purchase one common share at $0.44 for a period of five years from the issue date. The Company also issued 628,205 placement agent warrants with the same terms and incurred commission and other costs of $0.7 million out of which $0.09 million was allocated to the warrants and expensed in the consolidated statements of earnings (loss) and comprehensive income (loss). The placement agent warrants are considered an equity-settled share-based payment transaction and are measured at their fair value and classified as equity. On May 31, 2022, the Company issued 1,723,620 1.2 0.5 1.7 |
Share-based payments reserve
Share-based payments reserve | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Share-based payments reserve | 15. Share-based payments reserve Schedule of share based payments reserve For the year ended August 31, 2023 2022 Balance at beginning of year $ 6,825 $ 5,680 Share-based compensation expense 2,697 3,113 Transfer on exercise of options and other share-based awards (715 ) (1,968 ) Balance at end of year $ 8,807 $ 6,825 Omnibus Equity Incentive Plan Effective June 26, 2019, the Company adopted the Omnibus Equity Incentive Plan dated June 26, 2019 (the “Omnibus Plan”), which Omnibus Plan was approved by the shareholders on August 16, 2019, subsequently updated and approved by the shareholders on February 25, 2022. The purposes of the Omnibus Plan are: (a) to advance the interests of the Company by enhancing the ability of the Company and its subsidiaries to attract, motivate and retain employees, officers, directors, and consultants, which either of directors or officers may be consultants or employees; (b) to reward such persons for their sustained contributions; and (c) to encourage such persons to take into account the long-term corporate performance of the Company. The Omnibus Plan provides for the grant of options, restricted share units, deferred share units and performance share units (collectively, the “Omnibus Plan Awards”), all of which are described in detail in the Form 40-F Annual Report for the year ended August 31, 2023. The Omnibus Plan provides for the grant of other share-based awards to participants (“Other Share-Based Awards”), which awards would include the grant of common shares. All Other Share-Based Awards will be granted by an agreement evidencing the Other Share-Based Awards granted under the Omnibus Plan. Subject to adjustments as provided for under the Omnibus Plan, the maximum number of shares issuable pursuant to Omnibus Plan Awards outstanding at any time under the Omnibus Plan shall not exceed 10% of the aggregate number of common shares outstanding from time to time on a non-diluted basis; provided that the acquisition of common shares by the Company for cancellation shall not constitute non-compliance with the Omnibus Plan for any Omnibus Plan Awards outstanding prior to such purchase of common shares for cancellation. Share-based compensation expense for the year ended August 31, 2023 totalled $ 2.7 3.1 As at August 31, 2023, the Company had 3,617,450 2,106,675 a) Stock options Canadian Dollars denominated stock options Schedule of continuity of outstanding stock options Number of stock Weighted average Balance – August 31, 2021 7,351,000 CAD $ 0.41 Options exercised (450,000 ) CAD $ 0.42 Options expired (1,565,000 ) CAD $ 0.41 Balance – August 31, 2022 5,336,000 CAD $ 0.41 Options exercised (1) (350,000 ) CAD $ 0.42 Balance – August 31, 2023 4,986,000 CAD $ 0.41 (1) The weighted average share price at the time of the option exercise was C$0.75. Options to purchase common shares carry exercise prices and terms to maturity as follows: Schedule of options to purchase common shares carry exercise prices and terms to maturity Remaining Number of options Expiry contractual Exercise price Outstanding Exercisable Date life (years) C$ 0.40 2,354,000 2,354,000 October 11, 2026 3.1 C$ 0.43 2,532,000 2,532,000 September 29, 2026 3.1 C$ 0.35 100,000 100,000 January 2, 2027 3.3 C$ 0.41 (1) 4,986,000 4,986,000 3.1 (1) Total represents weighted average. US Dollars denominated stock options Schedule of continuity of outstanding stock options Number of stock Weighted average Balance – August 31, 2021 - - Options granted 7,375,000 $0.50 Balance – August 31, 2022 7,375,000 $0.50 Options granted 3,075,000 $0.45 Balance – August 31, 2023 10,450,000 $0.49 Options to purchase common shares carry exercise prices and terms to maturity as follows: Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Number of options Expiry contractual Exercise price Outstanding Exercisable Date life (years) USD $ 0.50 7,375,000 2,950,000 August 17, 2027 4.0 USD $ 0.45 3,075,000 615,000 August 28, 2028 5.0 USD $ 0.49 (1) 10,450,000 3,565,000 4.3 (1) (1) Total represents weighted average. The grant date fair value of options granted during the year ended August 31, 2023 was calculated using the Black-Scholes Option Pricing Model with the following assumptions: Schedule of fair value of options granted For the year ended August 31, 2023 2022 Grant-date share price $0.41 $0.49 Weighted average grant-date fair value $0.16 $0.25 Exercise price 0.45 0.50 Risk-free interest rates 4.41 4.78 % 3.27 3.43 % Expected life of stock options (in years) (1) 2.5 3.4 2.0 5.0 Expected volatility of share price (2) 49 55 % 62 72 % Expected dividend yield 0 % 0 % (1) The expected life term of stock options granted is derived from the remaining contractual term. (2) The Company uses historical volatility to estimate the expected volatility of the Company's share price. For the year ended August 31, 2023, share-based payment expenses related to stock options totalled $ 0.7 0.4 b) Restricted Share Units: The following table sets out activity with respect to outstanding RSUs: Schedule of restricted stock outstanding Number of Balance – August 31, 2021 - Granted 1,855,276 Balance – August 31, 2022 1,855,276 Granted 2,826,493 Forfeited (267,412 ) Exercised (941,280 ) Balance – August 31, 2023 3,473,077 The grant date fair value of the RSUs generally approximates the cost of purchasing the shares in the open market. Once vested, the common shares are distributed, less any amount due for taxes, to settle the obligation. The RSUs had a fair value of $ 1.07 0.5 0.2 |
Warrants reserve
Warrants reserve | 12 Months Ended |
Aug. 31, 2023 | |
Warrants Reserve | |
Warrants reserve | 16. Warrants reserve Schedule of Reserve for warrants Number of Weighted Weighted average Balance – August 31, 2021 23,681,052 $0.94 3.8 Warrants issued 18,576,923 $0.44 Warrants expired (287,901 ) $0.93 Balance – August 31, 2022 41,970,074 $0.72 3.6 Warrants expired (3,002,037 ) $1.21 Balance – August 31, 2023 38,968,037 $0.68 2.8 Warrant issuances: Activity during the year ended August 31, 2022: During the year ended August 31, 2022, the Company issued 17,948,718 628,205 0.44 17,948,718 2.7 0 1.65 52 60 The 628,205 0.09 0 1.65 52 60 As at August 31, 2023, the following warrants were outstanding: Schedule of warrants and compensation warrants Number of Exercise Expiry date Private placement financing warrants - December 23, 2020 2,777,268 $1.50 December 23, 2023 Private placement financing warrants - February 11, 2021 16,461,539 $0.80 February 11, 2026 Private placement financing broker warrants - February 11, 2021 1,152,307 $0.80 February 11, 2026 Private placement financing warrants – January 26, 2022 17,948,718 $0.44 January 26, 2027 Private placement financing placement agent warrants – January 26, 2022 628,205 $0.44 January 26, 2027 Balance – August 31, 2023 38,968,037 $ 0.68 (1) (1) Total represents weighted average. |
Non-controlling interest
Non-controlling interest | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Non-controlling interest | 17. Non-controlling interest The changes to the non-controlling interest for the year ended August 31, 2023 and year ended August 31, 2022 are as follows: Schedule of changes to the non-controlling interest For the year ended August 31, 2023 2022 Balance at beginning of year $ 2,361 $ (1,533 ) Non-controlling interests 45% share of Buckreef Golds comprehensive earnings 4,795 3,894 Balance at end of year $ 7,156 $ 2,361 Summarized financial information for Buckreef is disclosed below: Schedule of summarized financial information For the year ended August 31, Income Statement 2023 2022 Revenue $ 38,320 $ 15,094 Depreciation 1,259 122 Accretion expense 709 134 Income tax expense 5,331 436 Comprehensive income for the period 10,656 8,651 Statement of Financial Position August 31, 2023 August 31, 2022 Current assets $ 11,238 $ 7,253 Non-current assets 64,762 53,789 Total current liabilities (12,113 ) (8,602 ) Non-current liabilities (5,301 ) (2,815 ) Advances from parent, net (36,049 ) (37,725 ) For the year ended August 31, Statement of Cash Flows 2023 2022 Cash provided by operating activities $ 21,903 $ 8,414 Cash used in investing activities (17,863 ) (13,065 ) Cash (used in) provided by financing activities (2,012 ) 4,148 |
Related party transactions
Related party transactions | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions | |
Related party transactions | 18. Related party transactions Related parties include the Board of Directors and officers, extended relatives and enterprises that are controlled by these individuals as well as certain consultants performing similar functions. Remuneration of Directors and key management personnel of the Company was as follows: Schedule of Related Parties Compensation For the year ended August 31, Directors and key management personnel 2023 2022 Remuneration (1) $ 2,135 $ 2,085 Share-based compensation expense 2,148 3,078 Total directors and key management personnel $ 4,283 $ 5,163 (1) Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services. As at August 31, 2023, included in amounts payable is $ 0.4 0.2 During the year ended August 31, 2023, the Company granted stock options to key management personnel and RSUs to directors and key management personnel as part of the Omnibus Equity Incentive Plan (Note 15) in the aggregate of: a) 3.1 0.5 b) 1.2 0.5 During the year ended August 31, 2023, $ 0.7 0.4 0.2 0.1 During the year ended August 31, 2021, the Company granted common shares upon hiring key management personnel in the aggregate of: a) 1.6 1.1 b) Common shares on the first, second and third anniversary dates of the greater of up to 2 3.6 2.8 1.4 2.5 2 The common shares had a value of $ 7 During the year ended August 31, 2023, $ 1.3 2.5 During the year ended August 31, 2023, Buckreef recognized expenses of $ 0.7 0 0.2 0 |
General and administrative expe
General and administrative expenses | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
General and administrative expenses | 19. General and administrative expenses Schedule of General and Administrative expense For the year ended August 31, 2023 2022 (1) Directors’ fees (Note 18) $ 409 $ 454 Insurance 380 444 Office and general 159 419 Shareholder information 450 474 Professional fees 442 614 Salaries and benefits 2,470 2,533 Consulting 472 437 Share-based compensation expense (Notes 15 and 18) 2,501 3,113 Travel and accommodation 215 214 Depreciation 103 26 Other 27 192 Total general and administrative expenses $ 7,628 $ 8,920 (1) During the year ended August 31, 2022, prior to adoption of amendments to IAS 16 certain costs incurred related to Buckreef’s operating costs were recorded in general and administrative expenses. |
Management of capital
Management of capital | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Management of capital | 20. Management of capital The Company's objective when managing capital is to obtain adequate levels of funding to support its Buckreef’s operations and processing plant expansion, to obtain corporate and administrative functions necessary to support organizational functioning, and to obtain sufficient funding to further the identification and development of precious metals deposits. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company defines capital to include its shareholders’ equity. In order to carry out planned expansion and exploration activities and pay for administrative costs, the Company will spend its existing working capital and may raise additional amounts as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it determines there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company's approach to capital management during the year ended August 31, 2023. The Company is not subject to externally imposed capital requirements. The Company considers its capital to be shareholders’ equity, which is comprised of share capital, reserves, and accumulated deficit, which as at August 31, 2023 totaled $ 53.9 48.8 The Company may raise capital, as necessary, to meet its needs and take advantage of perceived opportunities and, therefore, does not have a numeric target for its capital structure. Funds are historically secured through equity capital raised by way of private placements; however, debt and other financing alternatives may be utilized as well. There can be no assurance that the Company will be able to continue raising equity capital in this manner. The Company invests all capital that is surplus to its immediate operational needs in short term, liquid and highly rated financial instruments, such as cash, and short-term guarantee deposits, all held with major North American financial institutions and North American treasury deposits. |
Financial instruments
Financial instruments | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Financial instruments | 21. Financial instruments Fair value of financial instruments The following table sets out the classification of the Company’s financial instruments, as at August 31, 2023 and August 31, 2022: Schedule of financial instruments August 31, 2023 August 31, 2022 Financial Assets Measured at amortized cost Amounts receivable $ 3,140 $ 2,540 Measured at fair value through profit or loss Cash 7,629 8,476 Financial Liabilities Measured at amortized cost Amounts payables and accrued liabilities 11,571 7,920 Measured at fair value through profit or loss Derivative financial instrument liabilities 3,544 6,849 Cash, derivative warrant liabilities and gold zero-cost collars are classified as measured at fair value through profit and loss. Amounts receivable and amounts payable are classified as measured at amortized cost. The carrying value of the Company’s cash, amounts receivable, amounts payable approximate their fair value due to the relatively short-term nature of these instruments. Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. These estimates are subject to and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Company classifies its financial instruments carried at fair value according to a three-level hierarchy that reflects the significance of the inputs used in making the fair value measurements. The three levels of fair value hierarchy, giving the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs, are as follows: · Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; · Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly; and · Level 3 – Inputs for assets or liabilities that are not based on observable market data. As at August 31, 2023 and August 31, 2022, cash was classified as Level 1 and derivative financial instruments (Note 11) were classified as Level 3 under the fair value hierarchy. A summary of the Company’s risk exposures as they relate to financial instruments are reflected below: Credit risk Credit risk is the risk of an unexpected loss if a counterparty to a financial instrument fails to meet its contractual obligations. The Company is subject to credit risk on the cash balances at the bank and amounts receivables and the carrying value of those accounts represent the Company’s maximum exposure to credit risk. The Company does not have any significant credit risk exposure as cash and cash equivalents are held with multi-national financial institutions with limited credit risk. The Company does not have significant credit risk exposure on accounts receivable as gold sales are executed with an established gold metal merchant with access to significant credit lines. The majority of gold production is sold into the spot market. The Company has not recorded an impairment or allowance for credit risk as at August 31, 2023 and 2022. Liquidity risk The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at August 31, 2023, the Company had cash of $ 7.6 17.2 17.8 0.6 3.5 Foreign currency risks The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The Company has operations in Canada, the United States of America and Tanzania and holds cash mainly in CAD, USD and Tanzanian Shillings (“TZS”). A significant change in the currency exchange rates between USD relative to CAD and TZS could have an effect on the Company’s results of operations, financial position or cash flows. As at August 31, 2023, the Company had no hedging agreements in place with respect to foreign exchange rates. The carrying amounts of the Company’s foreign currency denominated monetary assets and liabilities are as follows: Schedule of monetary assets and liabilities August 31, 2023 August 31, 2022 Monetary Assets CAD $ 303 $ 334 TZS 7,048 4,421 August 31, 2023 August 31, 2022 Monetary Liabilities CAD $ 868 $ 1,223 TZS 13,061 4,082 Sensitivity analysis If the US dollar had appreciated by 10% against the Canadian dollar and Tanzanian shillings, monetary financial assets and financial liabilities as at August 31, 2023 and August 31, 2022 would increase or (decrease) by: Schedule of financial assets and financial liabilities August 31, 2023 August 31, 2022 Financial Assets CAD $ (30 ) $ (33 ) TZS (705 ) (442 ) August 31, 2023 August 31, 2022 Financial Liabilities CAD $ 87 $ 122 TZS 1,306 408 |
Segmented information
Segmented information | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Segmented information | 22. Segmented information Operating segments The Company’s Chief Operating Decision Maker, its Chief Executive Officer, reviews the operating results, assesses the performance and makes capital allocation decisions of the Company viewed as a single operating segment engaged in mineral exploration and development in Tanzania. All amounts disclosed in the consolidated financial statements represent this single reporting segment. The Company’s corporate division only earns interest revenue that is considered incidental to the activities of the Company and does not meet the definition of an operating segment as defined in IFRS 8, Operating Segments Geographic segments The Company is in the business of mineral exploration and production in Tanzania. Information regarding the Company’s geographic locations are as follows: Schedule of revenue For the year ended August 31, Revenue 2023 2022 Tanzania $ 38,320 $ 15,094 Total revenue $ 38,320 $ 15,094 During the year ended August 31, 2023, the Company generated 96 36.9 15.1 Schedule of non-current assets Non-current assets August 31, 2023 August 31, 2022 Canada $ 55 $ - Tanzania 66,952 55,993 Total non-current assets $ 67,007 $ 55,993 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Commitments and contingencies | 23. Commitments and contingencies Commitments: In order to maintain its existing mining and exploration licenses, the Company is required to pay annual license fees. As at August 31, 2023 and August 31, 2022, these licenses remained in good standing and the Company is up to date on its license payments. Contingencies: The Company is involved in litigation and disputes arising in the normal course of operations. Management is of the opinion that the outcome of any potential litigation will not have a material adverse impact on the Company’s financial position or results of operations. Accordingly, no provisions for the settlement of outstanding litigation and potential claims have been accrued as at August 31, 2023 and August 31, 2022. |
Non-cash items
Non-cash items | 12 Months Ended |
Aug. 31, 2023 | |
Non-cash Items | |
Non-cash items | 24. Non-cash items Schedule of non-cash items For the year ended August 31, 2023 2022 Depreciation $ 1,362 $ 122 Change in fair value of derivative financial instruments (Note 11) (3,305 ) 2,035 Share-based compensation expense 2,697 3,113 Accretion of provision for reclamation (Note 12) 252 134 Deferred income tax expense (Note 9) 4,287 - Accretion of lease liabilities 9 - Deferred revenue (Note 10) (1,227 ) 2,485 Accretion of deferred revenue (Note 10) 454 - Foreign exchange gains 151 - VAT written-off (Note 5) 276 - Loss on assets disposal - 36 Other expenses 15 282 Total non-cash items $ 4,971 $ 8,207 |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Significant Accounting Policies | |
Basis of consolidation | a) Basis of consolidation The consolidated financial statements are prepared by consolidating the financial statements of the Company and its subsidiaries as defined in IFRS 10, Consolidated Financial Statements The material subsidiaries whose financial information is consolidated in these financial statements of the Company include: Schedule of consolidated financial statement Country of Ownership interest as at August 31, incorporation 2023 2022 TRX Gold Tanzania Limited Tanzania 100 % 100 % Tancan Mining Co. Limited Tanzania 100 % 100 % Buckreef Gold Company Ltd. Tanzania 55 % 55 % In preparing the consolidated financial statements, all inter-company balances and transactions between entities in the group, including any unrealized profits or losses, have been eliminated. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s equity therein. Non-controlling interests consist of the fair value of net assets acquired at the date of the original business combination and the non-controlling interests’ share of changes in equity since the date of the business combination. Total comprehensive profit or loss is attributed to non-controlling interests even if this results in non-controlling interests having a deficit balance. |
Functional and presentation currency | b) Functional and presentation currency The functional currency of each of the Company’s entities is measured using the currency of the primary economic environment in which that entity operates. The functional currency of all entities within the group is the USD, which is also the Company’s presentation currency. Foreign currency transactions are translated into the functional currency at exchange rates prevailing at the transaction date. Foreign currency monetary items are translated at period-end exchange rates. Differences arising on settlement of foreign currency transactions or translation of monetary items are recognized in profit or loss. Non-monetary items measured at historical cost continued to be carried at the exchange rates at the dates of the transactions. Non-monetary items measured at fair value are translated using the exchange rates at the date when the fair value is determined. Differences arising on translation of non-monetary items are treated in line with the recognition of the change in fair value of such an item. |
Cash and cash equivalents | c) Cash and cash equivalents Cash and cash equivalents comprise cash at banks and on hand, and short-term deposits with an original maturity of three months or less, which are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value. |
Inventories | d) Inventories Inventories include ore stockpile, gold in-circuit, gold doré and supplies inventory. The value of production inventories includes direct production costs, mine-site overheads, depreciation on property, plant and equipment used in the production process, and depreciation of capitalized stripping costs and mineral properties, incurred to bring the inventory to their current point in the processing cycle. General and administrative costs not related to production are excluded from inventories. Inventories are carried at the lower of cost and net realizable value (“NRV”). NRV is determined with reference to estimated selling prices, less estimated costs of completion and selling costs. If carrying value exceeds net realizable value, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exists. · Ore stockpile represents unprocessed ore that has been mined and is available for future processing. Ore stockpile is measured by estimating the number of tonnes added and removed from the stockpile through physical surveys, assay data and an estimated metallurgical recovery rate. Costs are added to ore stockpile based on current mining costs and are removed at the average costs per ounce of gold in the stockpile. In connection with the successful processing plant expansion which resulted in higher plant throughput and gold production, the Company changed the method of estimating the cost of its ore stockpiles effective September 1, 2022. The updated methodology estimates the cost of ore stockpiles based on estimated recoverable ounces of gold in ore stockpiles whereby the previous methodology was based on tonnes of ore in stockpiles. The Company believes this methodology better matches revenue and expenses and has been applied prospectively. · Gold in-circuit represents material that is currently being processed to extract the gold into a saleable form. The amount of gold in-circuit is determined by assay values and by measure of the various gold bearing materials in the recovery process. Gold in-circuit is carried at the average of the beginning inventory and the costs of ore material fed into the processing stream plus in-circuit conversion costs. · Gold doré represents saleable gold in the form of doré bars that have been poured. Included in the costs are the costs of mining and processing activities, including mine-site overheads and depreciation. · Supplies inventories include equipment parts and other consumables required in the mining and processing activities and are valued at the lower of average cost and net realizable value. Provision for obsolescence is determined by reference to specific inventory items identified. |
Mineral property, plant and equipment | e) Mineral property, plant and equipment Mineral property, plant and equipment (“PP&E”) are carried at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of PP&E consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Where an item of PP&E comprises major components with different useful lives, the components are accounted for as separate items of PP&E. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss in the period in which they occur. Depreciation PP&E are depreciated over their useful lives commencing from the time the respective asset is ready for use. The Company uses the units-of-production method (“UOP") or straight-line basis according to the pattern in which the asset’s future economic benefits are expected to be consumed. The UOP method results in a depreciation charge based on the recoverable ounces of gold produced. Depreciation for each class of PP&E is calculated using the following method: Schedule of depreciation rate for property, plant and equipment Class of PP&E Method Years Machinery and equipment Straight-line 5 8 Automotive Straight-line 5 Computer equipment and software Straight-line 3 8 Leasehold improvements Straight-line 5 Processing plant UOP n/a Mineral properties UOP n/a Management annually reviews the estimated useful lives, residual values and depreciation methods of the Company’s PP&E and also when events and circumstances indicate that such a review should be undertaken. Changes to estimated useful lives, residual values or depreciation methods resulting from such reviews are accounted for prospectively. In connection with the successful commissioning of the processing plant expansion, the Company reviewed the estimated useful life of its processing plant assets and determined the processing plant can be utilized to process all ore from Buckreef, although capital expenditures may be required in the future to expand the capacity of the plant or accommodate various types of ore. With regular and scheduled maintenance, the Company expects the processing plant to be utilized throughout the mine life of Buckreef. As a result, the processing plant is depreciated using the UOP method in the current year instead of using the straight-line method that was previously applied. This change in accounting estimate has been applied prospectively. An item of PP&E is derecognized upon disposal, when classified as held for sale or when no future economic benefits are expected to arise from the continued use of the asset. The difference between the net proceeds from disposal, if any, and the carrying amount of the asset, is recognized in the profit or loss. i) Construction in progress All expenditures undertaken in the development, construction, installation and/or completion of mine production facilities to extract, treat, gather, transport and store of minerals are capitalized and initially classified as “Construction in progress”. Costs incurred on properties in the development stage are included in the carrying amount of “Construction in progress”. A property is classified as a development property when a mine plan has been prepared and a decision is made to commercially develop the property. Development stage expenditures are costs incurred to obtain access to proven and probable mineral reserves or mineral resources and provide facilities for extracting, treating, gathering, transporting, and storing the minerals. All expenditures incurred from the time the development decision is made until when the asset is ready for its intended use are capitalized. Construction in progress assets are not depreciated until they are completed and available for use. Upon the commencement of commercial production, all related assets included in “Construction in progress” are reclassified to PP&E. Determination of commencement of commercial production is a complex process and requires significant assumptions and estimates. The commencement of commercial production is defined as the date when the mine is capable of operating in the manner intended by management. The Company considers primarily the following factors, among others, when determining the commencement of commercial production: · All major capital expenditures to achieve a consistent level of production and desired capacity have been incurred; · A reasonable period of testing of the mine plant and equipment has been completed; · A predetermined percentage of design capacity of the mine and mill has been reached; and · Required production levels, grades and recoveries have been achieved. When a mine development project moves into the commercial production stage, the capitalization of mine construction costs ceases and subsequent costs incurred are either regarded as inventory or expensed, except for capitalizable costs related to mining asset additions or improvements, or mineable reserve development. It is also at this point that depreciation commences. ii) Deferred stripping costs In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore from which minerals can be extracted economically. The process of mining overburden and waste materials to access ore from which minerals can be extracted economically is referred to as stripping. Stripping costs incurred in the production phase are accounted for as costs of the inventory produced during the period that the stripping costs are incurred, unless these costs are expected to provide a future economic benefit to an identifiable component of the ore body which will be extracted in the future. Components of the ore body are based on the distinct development phases identified by the mine planning engineers when determining the optimal development plan for the open pit. Capitalized stripping costs are depleted on a units-of-production based on contained ounces of gold mined. iii) Exploration and evaluation expenditures All direct costs related to the acquisition and exploration and development of specific properties are capitalized as incurred. Any cost incurred prior to obtaining the legal right to explore a mineral property are expensed as incurred. Overhead costs directly related to exploration are capitalized and allocated to mineral properties explored. If a property is abandoned, sold or impaired, an appropriate charge will be made to the income statement at the date of such impairment. The Company reviews the carrying value of capitalized exploration and evaluation expenditures when events or changes in circumstances indicate that the carrying value may not be recoverable. Examples of such events or changes in circumstances are as follows: · The period for which the Company has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; · Substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; · Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and · Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. |
Impairment of non-financial assets | If the carrying value exceeds fair value, the property will be written down to fair value with an impairment charged to the income statement in the period of impairment. An impairment is also recorded when management determines that it will discontinue exploration or development on a mineral property or when exploration rights or permits expire. Once an economic viability has been determined for a property and a decision to proceed with development has been approved, exploration and evaluation expenditures previously capitalized are first tested for impairment and then classified as mineral properties. f) Impairment of non-financial assets At each reporting date, the Company reviews the carrying amounts of its PP&E to determine whether there is an indication that those assets may be impaired. If any such indicators exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where an asset does not generate cash flows independent from other assets, the Company estimates the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of the asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount and an impairment loss is recognized immediately in profit or loss. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. |
Leases | g) Leases At the commencement date of a lease, the Company recognizes a lease payment liability, which is the discounted value of future lease payments using the lease-specific incremental borrowing rate, and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset). The Company separately recognizes interest expense on the lease liability and depreciation expense on the right-of-use asset. The Company recognizes right-of-use assets at the value of the corresponding lease liability, adjusted for any accrued and prepaid lease payments, and less any impairment provisions. Right-of-use assets are capitalized at the commencement date of the lease and comprise of the initial lease liability and initial indirect costs incurred by the Company when entering into the lease less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term of the underlying asset. Cash flows relating to the reduction of lease liabilities have been presented as cash used in financing activities. The Company has also elected to classify leases which end within 12 months of the date of initial application as short term leases. The lease payments associated with such leases are recognized as an expense in the income statement. |
Decommissioning, restoration and similar liabilities | h) Decommissioning, restoration and similar liabilities The Company recognizes provisions for legal and constructive obligations, including those associated with the reclamation of PP&E, when there is a present obligation as a result of exploration, development and production activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of removing facilities, abandoning sites and restoring the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date, based on current legal or constructive obligation. Upon initial recognition of the liability, the corresponding asset retirement obligation is added to the carrying amount of the related asset and the cost is amortized as an expense over the economic life of the asset using UOP. Following the initial recognition of the asset retirement obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to the discount rate and amount or timing of the underlying cash flows required to settle the obligation. Future restoration costs are reviewed at each reporting period. |
Taxation | i) Taxation Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to taxation authorities. Current income tax is calculated on the basis of the law enacted or substantively enacted at the reporting date in the countries where the Company and its subsidiaries operate and generate taxable income. Deferred income tax Deferred income tax is recognized in accordance with the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements at the end of each reporting period.The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. Deferred income tax liabilities are recognized for all taxable temporary differences, except: · Where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and losses, to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and losses can be utilized except: · Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred income tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply when the asset is realized or the liability is settled based on tax rates and laws that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. |
Financial instruments | j) Financial instruments i) Financial assets Financial assets are classified as either financial assets at fair value through profit or loss (“FVTPL”), amortized cost, or fair value through other comprehensive income (“FVOCI”). The Company determines the classification of its financial assets at initial recognition. a. FVTPL Financial assets are classified at FVTPL if they do not meet the criteria to be classified at amortized cost or FVOCI. Gains or losses on these items are recognized in net profit or loss. b. Amortized cost Financial assets are classified at amortized cost if both of the following criteria are met and the financial assets are not designated as at FVTPL: (i) the object of the Company’s business model for these financial assets is to collect their contractual cash flows, and (ii) the asset’s contractual cash flows represent “solely payments of principal and interest”. A provision is recorded when the estimated recoverable amount of the financial asset is lower than its carrying amount. At each reporting period, the Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. When sold or impaired, any accumulated fair value adjustments previously recognized are included in profit or loss. c. FVOCI For equity securities that are not held for trading, the Company can make an irrevocable election at initial recognition to classify the instruments at FVOCI with all subsequent changes in fair value being recognized in other comprehensive income (“OCI”). This election is available for each separate investment. For financial assets classified at FVOCI, fair value changes are recognized in OCI while dividends are recognized in profit or loss. On disposal of the financial asset, the cumulative fair value change remains in OCI and is not recycled to net profit or loss. d. Reclassifications Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Company changes its business model for managing its financial assets. ii) Derivative warrant liabilities Share warrants (not including compensation warrants) are considered a derivative as they are not indexed solely to the Company’s own stock. During the year ended August 31, 2021, the Company issued convertible debentures with detachable warrants for the Company’s common shares. The warrants are classified as a derivative financial liability as they are potentially exercisable in cash or on a cashless basis resulting in a variable number of shares being issued. The warrants were initially recognized at fair value and subsequently measured at FVTPL. The Company uses the Black-Scholes Option Pricing Model to estimate their fair values at each reporting date. iii) Agent warrants and financing warrants Warrants issued to agents in connection with equity financing are recorded at fair value and charged to share issuance costs associated with the offering with an offsetting credit to warrants reserve within shareholders’ equity. Warrants included in units offered to subscribers in connection with financings are valued using the residual value method whereby proceeds are first allocated to the fair value of common shares and the excess if any, allocated to warrants. iv) Gold zero-cost collars During the year ended August 31, 2023, the Company entered into a series of gold zero-cost collar contracts to be settled from April 2023 to August 2023. On initial recognition, the Company designated gold zero-cost collars to be derivative financial instruments and measured at FVTPL. The gold zero-cost collars are initially recognized at fair value and subsequently measured at FVTPL. Transaction costs associated with financial instruments, carried at FVTPL, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The Company has classified and measured its financial instruments as described below: · Cash, amounts receivables and other long-term assets are classified as and measured at amortized cost; · Amounts payable and accrued liabilities are classified as and measured at amortized cost; and · Derivative assets and liabilities include derivative financial instruments that do not qualify as hedges, or are not designated as hedges, and are classified as FVTPL. |
Share-based payments | k) Share-based payments Share-based payment transactions The Company has a number of equity-settled share-based compensation plans under which the Company’s directors, employees and consultants receive a portion of their remuneration in the form of equity instruments for services rendered. In certain cases, the Company settles statutory withholding tax obligations in cash, based on the value of the Company’s common shares, when vested equity instruments are settled. Where the value of goods or services received by the Company in exchange for equity instruments issued cannot be specifically measured, they are measured at fair value of the equity instrument granted. The Company’s share-based compensation plans are comprised of the following: Stock options Share-based compensation expense is recognized over the stock option vesting period based on the number of options estimated to vest. Management estimates the number of awards likely to vest at the time of a grant and at each reporting period up to the vesting date. On exercise of the vested options, shares are issued from treasury. The grant-date fair value of stock options is estimated using the Black-Scholes Option Pricing Model and expensed on a straight-line basis using the graded vesting method over the vesting period. The cumulative expense which is recognized for equity-settled transactions at each reporting date until the vesting date reflects the Company’s best estimate of the number of equity instruments that will ultimately vest. The profit or loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and the corresponding amount is represented in share-based payment reserve. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied provided that all other performance and/or service conditions are satisfied. Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at the date of modification. Restricted share units (“RSUs”) Each RSU has a value equal to one TRX Gold common share. RSUs generally vest in common shares of the Company. The after-tax value of the award is settled by issuance of common shares from treasury upon vesting. The grant-date fair value of RSUs is measured using the market value of the underlying shares at the date of grant and expensed on a straight-line basis using the graded vesting method over the vesting period as a component of general and administrative expenses and cost of sales, depending on the grantee. |
Revenue recognition | l) Revenue recognition Revenue consists of proceeds received or expected to be received for the Company’s principal products, gold and silver doré. Revenue is recognized when title to gold and silver passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract, usually upon delivery of the product to the buyer. Product pricing is determined under the sales agreements which are referenced against active and freely traded commodity markets, for example, the London Bullion Market for both gold and silver, in an identical form to the product sold. Gold and silver doré produced from Buckreef is sold at the prevailing spot market price based on London Fix Prices depending on the sales contract. In addition to selling refined bullion at spot, the Company has doré purchase agreements in place with a financial institution. Under the agreements, the Company has the option to sell approximately 90% of the gold and silver contained in doré bars prior to the completion of refining by the third-party refiner. Revenue is recognized when the Company has provided irrevocable instructions to the refiner to transfer to the buyer the refined ounces sold upon final processing outturn, and when payment of the purchase price for the purchased doré or bullion has been made in full by the purchaser. No judgement is involved in revenue recognition as revenue is recognized when payment has been sent by the buyer and the product has been effectively delivered to the customer with no further involvement required of the Company. |
Earnings (loss) per share | m) Earnings (loss) per share The basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the year. The weighted average number of common shares outstanding during the year includes vested common shares awards which have yet to be issued as little to no consideration is required to exercise. The diluted earnings (loss) per share reflects the potential dilution of common share equivalents, such as outstanding common share awards, stock options, RSUs and share purchase warrants in the weighted average number of common shares outstanding during the year, if dilutive. |
Related party transactions | n) Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or if they are subject to common control or are controlled by parties that have significant influence over the entity. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount, being the amount agreed by the parties to the transaction. |
Borrowing costs | o) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. |
New accounting pronouncements | p) New accounting pronouncements The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s consolidated financial statements that the Company reasonably expects will have an impact on its disclosures, financial position or performance when applied at a future date, are disclosed below. The Company intends to adopt these standards when they become effective. Other standards and interpretations that are issued, but not yet effective, which are not expected to impact the Company have not been listed. Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) In January 2020, the IASB issued an amendment to IAS 1, Presentation of Financial Statements · Specifying that an entity’s right to defer settlement must exist at the end of the reporting period; · Clarifying that classification is unaffected by management’s intentions or expectations about whether the entity will exercise its right to defer settlement; and · Clarifying that settlement of a liability refers to the transfer of cash, equity instruments, other assets or services. The amendments to IAS 1 are effective for annual reporting periods beginning on or after January 1, 2024, with early adoption permitted. Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) In February 2021, the IASB issued amendments to IAS 1, Presentation of Financial Statements, , Making Materiality Judgements, The amendments to IAS 1 and IFRS Practice Statement 2 are effective for annual reporting periods beginning on or after January 1, 2023, with early adoption permitted. Definition of Accounting Estimates (Amendments to IAS 8) In February 2021, the IASB issued amendments to IAS 8, Accounting policies, changes in accounting estimates and errors The amendments to IAS 8 are effective for annual reporting periods beginning on or after January 1, 2023, with early adoption permitted. Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) In May 2021, the IASB issued amendments to IAS 12, Income Taxes The amendments to IAS 12 are effective for annual reporting periods beginning on or after January 1, 2023, with early adoption permitted. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of statement of income | Schedule of statement of income Reported at Reclassification Restated at Financial instrument related cost and other (2,328 ) 2,328 - Loss on derivative financial instruments - (2,035 ) (2,035 ) Reclamation expense (134 ) 134 - Loss on disposal of assets (36 ) 36 - Interest and other expenses (14 ) (463 ) (477 ) Net loss and comprehensive loss $ (2,322 ) $ - $ (2,322 ) |
Schedule of financial position | Schedule of financial position Reported at Reclassification Restated at Amounts receivable $ 40 $ 2,500 $ 2,540 Other receivables 2,500 (2,500 ) - |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Significant Accounting Policies | |
Schedule of consolidated financial statement | Schedule of consolidated financial statement Country of Ownership interest as at August 31, incorporation 2023 2022 TRX Gold Tanzania Limited Tanzania 100 % 100 % Tancan Mining Co. Limited Tanzania 100 % 100 % Buckreef Gold Company Ltd. Tanzania 55 % 55 % |
Schedule of depreciation rate for property, plant and equipment | Schedule of depreciation rate for property, plant and equipment Class of PP&E Method Years Machinery and equipment Straight-line 5 8 Automotive Straight-line 5 Computer equipment and software Straight-line 3 8 Leasehold improvements Straight-line 5 Processing plant UOP n/a Mineral properties UOP n/a |
Amounts receivable (Tables)
Amounts receivable (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of summary of receivables | Schedule of summary of receivables August 31, 2023 August 31, 2022 Receivable from precious metal sales $ 488 $ - Sales tax receivable (1) 5,554 4,359 Prepaid gold purchase receivable (Note 10) - 2,500 Other 46 40 Other receivable 6,088 6,899 Less: Long-term portion (2,948 ) (4,359 ) Total amounts receivable $ 3,140 $ 2,540 (1) Sales tax receivables consist of harmonized services tax and value added tax ("VAT") due from Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against other taxes due to the Tanzania Revenue Authority ("TRA"). The Company has historically experienced delays in receiving payment or confirmation of offset against other taxes. The Company is in communication with the TRA and there is an expectation for either cash payments or offsetting of VAT receivable against other taxes in the future. VAT which the Company does not expect to recover within the next 12 months has been classified as long-term assets. |
Schedule of aged analysis of receivables | Schedule of aged analysis of receivables August 31, 2023 August 31, 2022 Less than 1 month $ 573 $ 2,510 1 to 3 months 1,055 30 Over 3 months 1,512 - Total amounts receivable $ 3,140 $ 2,540 |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of prepayments and other assets | Schedule of prepayments and other assets August 31, 2023 August 31, 2022 Prepaid expenses and deposits $ 796 $ 699 Deferred financing costs (1) 667 507 Total prepayments and other assets $ 1,463 $ 1,206 (1) Consists of $0.5 million in commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole discretion, has the right to sell up to $10 million of its common shares over a 36-month period and $0.2 million in deferred financing costs related to an At-the-Market Offering Agreement entered on May 12, 2023. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of inventory | Schedule of inventory August 31, 2023 August 31, 2022 Ore stockpile $ 3,361 $ 2,643 Gold in-circuit 689 210 Gold doré 52 253 Total precious metals inventories 4,102 3,106 Supplies 859 524 Total inventories $ 4,961 $ 3,630 |
Mineral property, plant and e_2
Mineral property, plant and equipment (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Mineral Property Plant And Equipment | |
Schedule of mineral property, plant and equipment | Schedule of mineral property, plant and equipment Construction Exploration (5) Mineral Processing Machinery (3) Other (4) Total Cost As at August 31, 2021 $ - $ 38,618 $ - $ 3,279 $ 954 $ 82 $ 42,933 Additions 7,097 1,945 - 3,797 507 61 13,407 Disposals - - - - (65 ) - (65 ) Transfer from exploration and evaluation assets (3) 40,563 (40,563 ) - - - - - Reclassification to other long-term asset (2,421 ) - - - - - (2,421 ) As at August 31, 2022 $ 45,239 $ - $ - $ 7,076 $ 1,396 $ 143 $ 53,854 Additions - 1,864 4,951 9,233 223 213 16,484 Adjustment to reclamation provision - - (2,234 ) - - - (2,234 ) Transfers (1) (45,239 ) - 38,485 6,754 5 (5 ) - As at August 31, 2023 $ - $ 1,864 $ 41,202 $ 23,063 $ 1,624 $ 351 $ 68,104 Accumulated depreciation As at August 31, 2021 $ - $ - $ - $ 1,340 $ 473 $ 20 $ 1,833 Depreciation - - - 226 175 15 416 Disposals - - - - (29 ) - (29 ) As at August 31, 2022 $ - $ - $ - $ 1,566 $ 619 $ 35 $ 2,220 Depreciation - - 1,261 210 209 145 1,825 Transfers (1) - - (362 ) 362 - - - As at August 31, 2023 $ - $ - $ 899 $ 2,138 $ 828 $ 180 $ 4,045 Net book value As at August 31, 2022 $ 45,239 $ - $ - $ 5,510 $ 777 $ 108 $ 51,634 As at August 31, 2023 $ - $ 1,864 $ 40,303 $ 20,925 $ 796 $ 171 $ 64,059 (1) On November 1, 2022, Buckreef achieved commercial production at which point development expenditures were subject to depreciation. (2) Represents exploration and evaluation expenditures related to the Eastern Porphyry and Anfield deposits on the Buckreef property. (3) Includes automotive and computer equipment and software. (4) Includes automotive, leasehold improvements and right-of-use assets. (5) During the year ended August 31, 2022, Buckreef transitioned from an exploration and evaluation asset under IFRS 6, Exploration for and Evaluation of Mineral Resources Property, Plant and Equipment |
Schedule of expenditures of the exploration and evaluation asset | Schedule of expenditures of the exploration and evaluation asset Buckreef Balance, August 31, 2021 $ 38,618 Exploration expenditures: Camp, field supplies and travel 172 License fees and exploration and field overhead 861 Geological consulting and field wages 67 Trenching and drilling 550 Mine design 227 Mining and processing costs 431 Gold sales (535 ) Payments to STAMICO as per Joint Venture agreement 172 Balance, November 30, 2021 $ 40,563 Reclassification to mineral property, plant and equipment (40,563 ) Balance, August 31, 2022 $ - Exploration expenditures: Geological consulting 529 Personnel costs 385 Trenching and drilling 921 Others 29 Balance, August 31, 2023 $ 1,864 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of provisional income tax rates | Schedule of provisional income tax rates For the year ended August 31, 2023 2022 Combined basic Canadian federal and provincial statutory income tax rates including surtaxes 26.50 % 26.50 % Statutory income tax rates applied to accounting income $ 3,280 $ (637 ) Increase (decrease) in provision for income taxes: Foreign tax rates different from statutory rate 50 322 Permanent differences and other items 1,222 1,669 Benefit of tax losses not recognized 779 (918 ) Total provision for income taxes $ 5,331 $ 436 |
Schedule of provision for income taxes | Schedule of provision for income taxes August 31, 2023 August 31, 2022 Current income taxes $ 1,044 $ 436 Deferred income taxes 4,287 - Total provision for income taxes $ 5,331 $ 436 |
Schedule of deferred income tax assets and liabilities | Schedule of deferred income tax assets and liabilities Deferred Income Tax Liabilities Mineral properties Total At August 31, 2021 $ (12,423 ) $ (12,423 ) Charged to the consolidated statement of comprehensive income (loss) 2,373 2,373 At August 31, 2022 (10,050 ) (10,050 ) Charged to the consolidated statement of comprehensive income (1,438 ) (1,438 ) At August 31, 2023 $ (11,488 ) $ (11,488 ) Deferred Income Tax Assets Non-capital losses Total At August 31, 2021 $ 12,423 $ 12,423 Charged to the consolidated statement of comprehensive loss (2,373 ) (2,373 ) At August 31, 2022 10,050 10,050 Charged to the consolidated statement of comprehensive income (2,849 ) (2,849 ) At August 31, 2023 $ 7,201 $ 7,201 Net deferred tax assets (liabilities) As at August 31, 2022 $ - $ - As at August 31, 2023 $ (4,287 ) $ (4,287 ) |
Schedule of temporary differences, unused tax losses and unused tax credits | Schedule of temporary differences, unused tax losses and unused tax credits August 31, 2023 August 31, 2022 Non-capital losses $ 88,377 $ 120,528 Property, plant and equipment 149 89 Capital losses - 3 Financing costs 1,414 - Total unrecognized temporary differences $ 89,940 $ 120,620 |
Schedule of non capital tax losses | Schedule of non capital tax losses Canada Tanzania (1) 2026 $ 1,265 $ - 2027 1,026 - 2028 1,117 - 2029 1,454 - 2030 1,055 - 2031 1,757 - 2032 1,845 - 2033 1,738 - 2034 1,622 - 2035 1,466 - 2036 1,515 - 2037 2,118 - 2038 2,760 - 2039 3,506 - 2040 5,426 - 2041 5,934 - 2042 4,328 - 2043 4,078 - No expiry - 44,367 Total non-capital tax losses $ 44,010 $ 44,367 (1) The maximum amount of tax losses that a business can utilize in Tanzania is 70% of its taxable profit for the current year. The remaining 30% of taxable profit is subject to a statutory tax rate of 30%. As a result, Buckreef's current income tax is calculated at an effective tax rate of 9% until Buckreef's tax loss carryforwards are fully utilized. Tax losses in Tanzania can only be utilized by the entity to which the tax losses relate to. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Deferred Revenue | |
Schedule of deferred revenue liability | Schedule of deferred revenue liability Amount As at August 31, 2021 $ - Drawdown 2,500 Deferred transaction costs (15 ) As at August 31, 2022 $ 2,485 Drawdown 1,000 Accretion of deferred revenue 454 Transaction costs expensed 15 Revenue recognized (2,227 ) As at August 31, 2023 $ 1,727 |
Schedule of deferred revenue | Schedule of deferred revenue For the year ended August 31, 2023 2022 Current portion of deferred revenue $ 1,549 $ 1,864 Deferred revenue 178 621 Balance at end of year $ 1,727 $ 2,485 |
Derivative financial instrume_2
Derivative financial instrument liabilities (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Financial Instrument Liabilities | |
Schedule of derivative financial instrument liabilities | Schedule of derivative financial instrument liabilities August 31, 2023 August 31, 2022 Derivative warrant liabilities $ 3,544 $ 6,849 Total derivative financial instrument liabilities $ 3,544 $ 6,849 |
Schedule of derivative warrant liabilities | Schedule of derivative warrant liabilities Amount As at August 31, 2021 $ 2,149 Warrants issued January 26, 2022 2,665 Change in fair value 2,035 As at August 31, 2022 $ 6,849 Change in fair value (3,305 ) As at August 31, 2023 $ 3,544 |
Schedule of assumptions fair value of derivative warrant liabilities | Schedule of assumptions fair value of derivative warrant liabilities August 31, 2023 August 31, 2022 Share price $0.39 $0.48 Risk-free interest rate 4.43 4.66 % 3.32 3.44 % Dividend yield 0 % 0 % Expected volatility 52 % 55 60 % Remaining term (in years) 2.5 3.4 0.9 4.4 |
Schedule of net income and net assets | Schedule of net income and net assets August 31, 2023 10% change in expected volatilities Increase Decrease (Loss) income $ (840 ) $ 819 |
Provision for reclamation (Tabl
Provision for reclamation (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Provision For Reclamation | |
Schedule of reconciliation for reclamation expenses | Schedule of reconciliation for reclamation expenses For the year ended August 31, 2023 2022 Balance at beginning of year $ 2,815 $ 2,681 Decrease in estimate for provision for reclamation (2,234 ) - Accretion of provision for reclamation (Note 24) 252 134 Balance at end of year $ 833 $ 2,815 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of earnings loss per share | Schedule of earnings loss per share For the year ended August 31, 2023 2022 Net income (loss) attributable to shareholders $ 2,250 $ (6,216 ) Weighted average number of common shares for basic EPS (1) 282,401,603 266,999,724 Effect of dilutive stock options, warrants, RSUs and share awards 6,127,725 - Weighted average number of common shares for diluted EPS (1) 288,529,328 266,999,724 (1) The weighted average number of common shares for basic and diluted EPS include vested, but unissued, common shares relating to common share awards. |
Share-based payments reserve (T
Share-based payments reserve (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
IfrsStatementLineItems [Line Items] | |
Schedule of share based payments reserve | Schedule of share based payments reserve For the year ended August 31, 2023 2022 Balance at beginning of year $ 6,825 $ 5,680 Share-based compensation expense 2,697 3,113 Transfer on exercise of options and other share-based awards (715 ) (1,968 ) Balance at end of year $ 8,807 $ 6,825 |
Schedule of continuity of outstanding stock options | Schedule of continuity of outstanding stock options Number of stock Weighted average Balance – August 31, 2021 7,351,000 CAD $ 0.41 Options exercised (450,000 ) CAD $ 0.42 Options expired (1,565,000 ) CAD $ 0.41 Balance – August 31, 2022 5,336,000 CAD $ 0.41 Options exercised (1) (350,000 ) CAD $ 0.42 Balance – August 31, 2023 4,986,000 CAD $ 0.41 (1) The weighted average share price at the time of the option exercise was C$0.75. |
Schedule of Options to purchase common shares carry exercise prices and terms to maturity | Schedule of options to purchase common shares carry exercise prices and terms to maturity Remaining Number of options Expiry contractual Exercise price Outstanding Exercisable Date life (years) C$ 0.40 2,354,000 2,354,000 October 11, 2026 3.1 C$ 0.43 2,532,000 2,532,000 September 29, 2026 3.1 C$ 0.35 100,000 100,000 January 2, 2027 3.3 C$ 0.41 (1) 4,986,000 4,986,000 3.1 (1) Total represents weighted average. |
Schedule of continuity of outstanding stock options | Schedule of continuity of outstanding stock options Number of stock Weighted average Balance – August 31, 2021 - - Options granted 7,375,000 $0.50 Balance – August 31, 2022 7,375,000 $0.50 Options granted 3,075,000 $0.45 Balance – August 31, 2023 10,450,000 $0.49 |
Schedule of fair value of options granted | Schedule of fair value of options granted For the year ended August 31, 2023 2022 Grant-date share price $0.41 $0.49 Weighted average grant-date fair value $0.16 $0.25 Exercise price 0.45 0.50 Risk-free interest rates 4.41 4.78 % 3.27 3.43 % Expected life of stock options (in years) (1) 2.5 3.4 2.0 5.0 Expected volatility of share price (2) 49 55 % 62 72 % Expected dividend yield 0 % 0 % (1) The expected life term of stock options granted is derived from the remaining contractual term. (2) The Company uses historical volatility to estimate the expected volatility of the Company's share price. |
Schedule of restricted stock outstanding | Schedule of restricted stock outstanding Number of Balance – August 31, 2021 - Granted 1,855,276 Balance – August 31, 2022 1,855,276 Granted 2,826,493 Forfeited (267,412 ) Exercised (941,280 ) Balance – August 31, 2023 3,473,077 |
Stock Options [Member] | |
IfrsStatementLineItems [Line Items] | |
Schedule of Options to purchase common shares carry exercise prices and terms to maturity | Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Number of options Expiry contractual Exercise price Outstanding Exercisable Date life (years) USD $ 0.50 7,375,000 2,950,000 August 17, 2027 4.0 USD $ 0.45 3,075,000 615,000 August 28, 2028 5.0 USD $ 0.49 (1) 10,450,000 3,565,000 4.3 (1) (1) Total represents weighted average. |
Warrants reserve (Tables)
Warrants reserve (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Warrants Reserve | |
Schedule of Reserve for warrants | Schedule of Reserve for warrants Number of Weighted Weighted average Balance – August 31, 2021 23,681,052 $0.94 3.8 Warrants issued 18,576,923 $0.44 Warrants expired (287,901 ) $0.93 Balance – August 31, 2022 41,970,074 $0.72 3.6 Warrants expired (3,002,037 ) $1.21 Balance – August 31, 2023 38,968,037 $0.68 2.8 |
Schedule of warrants and compensation warrants | Schedule of warrants and compensation warrants Number of Exercise Expiry date Private placement financing warrants - December 23, 2020 2,777,268 $1.50 December 23, 2023 Private placement financing warrants - February 11, 2021 16,461,539 $0.80 February 11, 2026 Private placement financing broker warrants - February 11, 2021 1,152,307 $0.80 February 11, 2026 Private placement financing warrants – January 26, 2022 17,948,718 $0.44 January 26, 2027 Private placement financing placement agent warrants – January 26, 2022 628,205 $0.44 January 26, 2027 Balance – August 31, 2023 38,968,037 $ 0.68 (1) (1) Total represents weighted average. |
Non-controlling interest (Table
Non-controlling interest (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of changes to the non-controlling interest | Schedule of changes to the non-controlling interest For the year ended August 31, 2023 2022 Balance at beginning of year $ 2,361 $ (1,533 ) Non-controlling interests 45% share of Buckreef Golds comprehensive earnings 4,795 3,894 Balance at end of year $ 7,156 $ 2,361 |
Schedule of summarized financial information | Schedule of summarized financial information For the year ended August 31, Income Statement 2023 2022 Revenue $ 38,320 $ 15,094 Depreciation 1,259 122 Accretion expense 709 134 Income tax expense 5,331 436 Comprehensive income for the period 10,656 8,651 Statement of Financial Position August 31, 2023 August 31, 2022 Current assets $ 11,238 $ 7,253 Non-current assets 64,762 53,789 Total current liabilities (12,113 ) (8,602 ) Non-current liabilities (5,301 ) (2,815 ) Advances from parent, net (36,049 ) (37,725 ) For the year ended August 31, Statement of Cash Flows 2023 2022 Cash provided by operating activities $ 21,903 $ 8,414 Cash used in investing activities (17,863 ) (13,065 ) Cash (used in) provided by financing activities (2,012 ) 4,148 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions | |
Schedule of Related Parties Compensation | Schedule of Related Parties Compensation For the year ended August 31, Directors and key management personnel 2023 2022 Remuneration (1) $ 2,135 $ 2,085 Share-based compensation expense 2,148 3,078 Total directors and key management personnel $ 4,283 $ 5,163 (1) Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services. |
General and administrative ex_2
General and administrative expenses (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of General and Administrative expense | Schedule of General and Administrative expense For the year ended August 31, 2023 2022 (1) Directors’ fees (Note 18) $ 409 $ 454 Insurance 380 444 Office and general 159 419 Shareholder information 450 474 Professional fees 442 614 Salaries and benefits 2,470 2,533 Consulting 472 437 Share-based compensation expense (Notes 15 and 18) 2,501 3,113 Travel and accommodation 215 214 Depreciation 103 26 Other 27 192 Total general and administrative expenses $ 7,628 $ 8,920 (1) During the year ended August 31, 2022, prior to adoption of amendments to IAS 16 certain costs incurred related to Buckreef’s operating costs were recorded in general and administrative expenses. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of financial instruments | Schedule of financial instruments August 31, 2023 August 31, 2022 Financial Assets Measured at amortized cost Amounts receivable $ 3,140 $ 2,540 Measured at fair value through profit or loss Cash 7,629 8,476 Financial Liabilities Measured at amortized cost Amounts payables and accrued liabilities 11,571 7,920 Measured at fair value through profit or loss Derivative financial instrument liabilities 3,544 6,849 |
Schedule of monetary assets and liabilities | Schedule of monetary assets and liabilities August 31, 2023 August 31, 2022 Monetary Assets CAD $ 303 $ 334 TZS 7,048 4,421 August 31, 2023 August 31, 2022 Monetary Liabilities CAD $ 868 $ 1,223 TZS 13,061 4,082 |
Schedule of financial assets and financial liabilities | Schedule of financial assets and financial liabilities August 31, 2023 August 31, 2022 Financial Assets CAD $ (30 ) $ (33 ) TZS (705 ) (442 ) August 31, 2023 August 31, 2022 Financial Liabilities CAD $ 87 $ 122 TZS 1,306 408 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of revenue | Schedule of revenue For the year ended August 31, Revenue 2023 2022 Tanzania $ 38,320 $ 15,094 Total revenue $ 38,320 $ 15,094 |
Schedule of non-current assets | Schedule of non-current assets Non-current assets August 31, 2023 August 31, 2022 Canada $ 55 $ - Tanzania 66,952 55,993 Total non-current assets $ 67,007 $ 55,993 |
Non-cash items (Tables)
Non-cash items (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Non-cash Items | |
Schedule of non-cash items | Schedule of non-cash items For the year ended August 31, 2023 2022 Depreciation $ 1,362 $ 122 Change in fair value of derivative financial instruments (Note 11) (3,305 ) 2,035 Share-based compensation expense 2,697 3,113 Accretion of provision for reclamation (Note 12) 252 134 Deferred income tax expense (Note 9) 4,287 - Accretion of lease liabilities 9 - Deferred revenue (Note 10) (1,227 ) 2,485 Accretion of deferred revenue (Note 10) 454 - Foreign exchange gains 151 - VAT written-off (Note 5) 276 - Loss on assets disposal - 36 Other expenses 15 282 Total non-cash items $ 4,971 $ 8,207 |
Basis of Preparation (Details)
Basis of Preparation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Net income (loss) and comprehensive income (loss) | $ 7,045 | $ (2,322) |
Previously Reported [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial instrument related costs and other | (2,328) | |
Loss on derivative financial instruments | ||
Reclamation expense | (134) | |
Loss on disposal of assets | (36) | |
Interest and other expenses | (14) | |
Net income (loss) and comprehensive income (loss) | (2,322) | |
Presentation Reclass [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial instrument related costs and other | 2,328 | |
Loss on derivative financial instruments | (2,035) | |
Reclamation expense | 134 | |
Loss on disposal of assets | 36 | |
Interest and other expenses | (463) | |
Net income (loss) and comprehensive income (loss) | ||
Restateds [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial instrument related costs and other | ||
Loss on derivative financial instruments | (2,035) | |
Reclamation expense | ||
Loss on disposal of assets | ||
Interest and other expenses | (477) | |
Net income (loss) and comprehensive income (loss) | $ (2,322) |
Basis of Preparation (Details 1
Basis of Preparation (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | $ 3,140 | $ 2,540 |
Previously Reported [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | 40 | |
Other receivables | 2,500 | |
Reclassification Adjustment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | 2,500 | |
Other receivables | (2,500) | |
Restateds [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | 2,540 | |
Other receivables |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
T R X Gold Tanzania Limited [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Ownership interest in subsidiary | 100% | 100% |
Tancan Mining Co Limited [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Ownership interest in subsidiary | 100% | 100% |
Buckreef Gold Company Ltd [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Ownership interest in subsidiary | 55% | |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Ownership interest in subsidiary | 55% |
Significant accounting polici_4
Significant accounting policies (Details 1) | 12 Months Ended |
Aug. 31, 2023 | |
Machinery [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life | 5 years |
Machinery [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life | 8 years |
Automotive [Member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life | 5 years |
Computer equipment [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life | 3 years |
Computer equipment [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life | 8 years |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful life | 5 years |
Amounts receivable (Details)
Amounts receivable (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | |||
Receivable from precious metal sales | $ 488 | ||
Sales tax receivable | [1] | 5,554 | 4,359 |
Prepaid gold purchase receivable (Note 10) | 2,500 | ||
Other | 46 | 40 | |
Other receivable | 6,088 | 6,899 | |
Less: Long-term portion | (2,948) | (4,359) | |
Total amounts receivable | $ 3,140 | $ 2,540 | |
[1]Sales tax receivables consist of harmonized services tax and value added tax ("VAT") due from Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against other taxes due to the Tanzania Revenue Authority ("TRA"). The Company has historically experienced delays in receiving payment or confirmation of offset against other taxes. The Company is in communication with the TRA and there is an expectation for either cash payments or offsetting of VAT receivable against other taxes in the future. VAT which the Company does not expect to recover within the next 12 months has been classified as long-term assets. |
Amounts receivable (Details 1)
Amounts receivable (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 3,140 | $ 2,540 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 573 | 2,510 |
Later than one month and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 1,055 | 30 |
Later than three months and not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 1,512 |
Prepayments and other assets (D
Prepayments and other assets (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | |||
Prepaid expenses and deposits | $ 796 | $ 699 | |
Deferred financing costs | [1] | 667 | 507 |
Total prepayments and other assets | $ 1,463 | $ 1,206 | |
[1]Consists of $0.5 million in commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole discretion, has the right to sell up to $10 million of its common shares over a 36-month period and $0.2 million in deferred financing costs related to an At-the-Market Offering Agreement entered on May 12, 2023. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Notes and other explanatory information [abstract] | ||
Ore stockpile | $ 3,361 | $ 2,643 |
Gold in-circuit | 689 | 210 |
Gold doré | 52 | 253 |
Total precious metals inventories | 4,102 | 3,106 |
Supplies | 859 | 524 |
Total inventories | $ 4,961 | $ 3,630 |
Amounts receivable (Details Nar
Amounts receivable (Details Narrative) - USD ($) $ in Millions | Aug. 31, 2023 | May 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | |||
VAT expense | $ 0.3 | $ 0 | |
VAT refunds | $ 2.3 | ||
T R A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
VAT refunds | $ 1.3 |
Mineral property, plant and e_3
Mineral property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | ||
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | $ 45,239 | ||
Accumulated depreciation ending balance | $ 45,239 | ||
Net book value | 45,239 | ||
Exploration And Evaluation Expenditures [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [1] | ||
Accumulated depreciation ending balance | [1] | 1,864 | |
Net book value | [1] | 1,864 | |
Mining property [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | |||
Accumulated depreciation ending balance | 40,303 | ||
Net book value | 40,303 | ||
Processing Plant And Related Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 5,510 | ||
Accumulated depreciation ending balance | 20,925 | 5,510 | |
Net book value | 20,925 | 5,510 | |
Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [2] | 777 | |
Accumulated depreciation ending balance | [2] | 796 | 777 |
Net book value | [2] | 796 | 777 |
Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [3] | 108 | |
Accumulated depreciation ending balance | [3] | 171 | 108 |
Net book value | [3] | 171 | 108 |
Total [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 51,634 | ||
Accumulated depreciation ending balance | 64,059 | 51,634 | |
Net book value | 64,059 | 51,634 | |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 53,854 | 42,933 | |
Additions | 16,484 | 13,407 | |
Disposals | (65) | ||
Transfer from exploration and evaluation assets | [2] | ||
Reclassification to other long-term asset | (2,421) | ||
Adjustment to reclamation provision | (2,234) | ||
Transfers | [4] | ||
Accumulated depreciation ending balance | 68,104 | 53,854 | |
Net book value | 68,104 | 53,854 | |
Gross carrying amount [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 45,239 | ||
Additions | 7,097 | ||
Disposals | |||
Transfer from exploration and evaluation assets | [2] | 40,563 | |
Reclassification to other long-term asset | (2,421) | ||
Adjustment to reclamation provision | |||
Transfers | [4] | (45,239) | |
Accumulated depreciation ending balance | 45,239 | ||
Net book value | 45,239 | ||
Gross carrying amount [member] | Exploration And Evaluation Expenditures [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [1] | 38,618 | |
Additions | [1] | 1,864 | 1,945 |
Disposals | [1] | ||
Transfer from exploration and evaluation assets | [1],[2] | (40,563) | |
Reclassification to other long-term asset | [1] | ||
Adjustment to reclamation provision | [1] | ||
Transfers | [1],[4] | ||
Accumulated depreciation ending balance | [1] | 1,864 | |
Net book value | [1] | 1,864 | |
Gross carrying amount [member] | Mining property [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | |||
Additions | 4,951 | ||
Disposals | |||
Transfer from exploration and evaluation assets | [2] | ||
Reclassification to other long-term asset | |||
Adjustment to reclamation provision | (2,234) | ||
Transfers | [4] | 38,485 | |
Accumulated depreciation ending balance | 41,202 | ||
Net book value | 41,202 | ||
Gross carrying amount [member] | Processing Plant And Related Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 7,076 | 3,279 | |
Additions | 9,233 | 3,797 | |
Disposals | |||
Transfer from exploration and evaluation assets | [2] | ||
Reclassification to other long-term asset | |||
Adjustment to reclamation provision | |||
Transfers | [4] | 6,754 | |
Accumulated depreciation ending balance | 23,063 | 7,076 | |
Net book value | 23,063 | 7,076 | |
Gross carrying amount [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [2] | 1,396 | 954 |
Additions | [2] | 223 | 507 |
Disposals | [2] | (65) | |
Transfer from exploration and evaluation assets | [2] | ||
Reclassification to other long-term asset | [2] | ||
Adjustment to reclamation provision | [2] | ||
Transfers | [2],[4] | 5 | |
Accumulated depreciation ending balance | [2] | 1,624 | 1,396 |
Net book value | [2] | 1,624 | 1,396 |
Gross carrying amount [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [3] | 143 | 82 |
Additions | [3] | 213 | 61 |
Disposals | [3] | ||
Transfer from exploration and evaluation assets | [2],[3] | ||
Reclassification to other long-term asset | [3] | ||
Adjustment to reclamation provision | [3] | ||
Transfers | [3],[4] | (5) | |
Accumulated depreciation ending balance | [3] | 351 | 143 |
Net book value | [3] | 351 | 143 |
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 2,220 | 1,833 | |
Disposals | (29) | ||
Transfers | [4] | ||
Accumulated depreciation ending balance | 4,045 | 2,220 | |
Depreciation | 1,825 | 416 | |
Net book value | 4,045 | 2,220 | |
Accumulated depreciation and amortisation [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | |||
Disposals | |||
Transfers | [4] | ||
Accumulated depreciation ending balance | |||
Depreciation | |||
Net book value | |||
Accumulated depreciation and amortisation [member] | Exploration And Evaluation Expenditures [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [1] | ||
Disposals | [1] | ||
Transfers | [1],[4] | ||
Accumulated depreciation ending balance | [1] | ||
Depreciation | [1] | ||
Net book value | [1] | ||
Accumulated depreciation and amortisation [member] | Mining property [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | |||
Disposals | |||
Transfers | [4] | (362) | |
Accumulated depreciation ending balance | 899 | ||
Depreciation | 1,261 | ||
Net book value | 899 | ||
Accumulated depreciation and amortisation [member] | Processing Plant And Related Infrastructure [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | 1,566 | 1,340 | |
Disposals | |||
Transfers | [4] | 362 | |
Accumulated depreciation ending balance | 2,138 | 1,566 | |
Depreciation | 210 | 226 | |
Net book value | 2,138 | 1,566 | |
Accumulated depreciation and amortisation [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [2] | 619 | 473 |
Disposals | [2] | (29) | |
Transfers | [2],[4] | ||
Accumulated depreciation ending balance | [2] | 828 | 619 |
Depreciation | [2] | 209 | 175 |
Net book value | [2] | 828 | 619 |
Accumulated depreciation and amortisation [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated depreciation beginning balance | [3] | 35 | 20 |
Disposals | [3] | ||
Transfers | [3],[4] | ||
Accumulated depreciation ending balance | [3] | 180 | 35 |
Depreciation | [3] | 145 | 15 |
Net book value | [3] | $ 180 | $ 35 |
[1]During the year ended August 31, 2022, Buckreef transitioned from an exploration and evaluation asset under IFRS 6, Exploration for and Evaluation of Mineral Resources Property, Plant and Equipment |
Mineral property, plant and e_4
Mineral property, plant and equipment (Details 1) - Buckreef Gold Project [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Aug. 31, 2022 | Aug. 31, 2023 | |
IfrsStatementLineItems [Line Items] | |||
Exploration and evaluation assets and expenditures, beginning balance | $ 38,618 | $ 40,563 | |
Camp, field supplies and travel | 172 | ||
License fees and exploration and field overhead | 861 | ||
Geological consulting and field wages | 67 | ||
Trenching and drilling | 550 | ||
Mine design | 227 | ||
Mining and processing costs | 431 | ||
Gold sales | (535) | ||
Payments to STAMICO as per Joint Venture agreement | 172 | ||
Exploration and evaluation assets and expenditures, ending balance | $ 40,563 | 1,864 | |
Reclassification to mineral property, plant and equipment | $ (40,563) | ||
Geological consulting | 529 | ||
Personnel costs | 385 | ||
Trenching and drilling | 921 | ||
Others | $ 29 |
Income tax (Details)
Income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Combined basic Canadian federal and provincial statutory income tax rates including surtaxes | 26.50% | 26.50% |
Statutory income tax rates applied to accounting income | $ 3,280 | $ (637) |
Increase (decrease) in provision for income taxes: | ||
Foreign tax rates different from statutory rate | 50 | 322 |
Permanent differences and other items | 1,222 | 1,669 |
Benefit of tax losses not recognized | 779 | (918) |
Total provision for income taxes | $ 5,331 | $ 436 |
Income tax (Details 1)
Income tax (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Current income taxes | $ 1,044 | $ 436 |
Deferred income taxes | 4,287 | |
Total provision for income taxes | $ 5,331 | $ 436 |
Income tax (Details 2)
Income tax (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Balance, start of period | $ (10,050) | $ (12,423) |
Charged to the consolidated statement of comprehensive loss | (1,438) | 2,373 |
Balance, end of period | (11,488) | (10,050) |
Balance, start of period | 10,050 | 12,423 |
Charged to the consolidated statement of comprehensive loss | (2,849) | (2,373) |
Balance, end of period | 7,201 | 10,050 |
Net deferred tax assets (liabilities) | (4,287) | |
Deferred Tax Liabilities Mineral Properties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance, start of period | (10,050) | (12,423) |
Charged to the consolidated statement of comprehensive loss | (1,438) | 2,373 |
Balance, end of period | (11,488) | (10,050) |
Noncapital Losses [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance, start of period | 10,050 | 12,423 |
Charged to the consolidated statement of comprehensive loss | (2,849) | (2,373) |
Balance, end of period | 7,201 | 10,050 |
Net deferred tax assets (liabilities) | $ (4,287) |
Income tax (Details 3)
Income tax (Details 3) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Total unrecognized temporary differences | $ 89,940 | $ 120,620 |
Noncapital Losses [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total unrecognized temporary differences | 88,377 | 120,528 |
Property, plant and equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total unrecognized temporary differences | 149 | 89 |
Capital Losses [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total unrecognized temporary differences | 3 | |
Financing Costs [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total unrecognized temporary differences | $ 1,414 |
Income tax (Details 4)
Income tax (Details 4) $ in Thousands | Aug. 31, 2023 USD ($) | |
Canada [Member] | ||
IfrsStatementLineItems [Line Items] | ||
2026 | $ 1,265 | |
2027 | 1,026 | |
2028 | 1,117 | |
2029 | 1,454 | |
2030 | 1,055 | |
2031 | 1,757 | |
2032 | 1,845 | |
2033 | 1,738 | |
2034 | 1,622 | |
2035 | 1,466 | |
2036 | 1,515 | |
2037 | 2,118 | |
2038 | 2,760 | |
2039 | 3,506 | |
2040 | 5,426 | |
2041 | 5,934 | |
2042 | 4,328 | |
2043 | 4,078 | |
No expiry | ||
Total non-capital tax losses | 44,010 | |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
2026 | [1] | |
2027 | [1] | |
2028 | [1] | |
2029 | [1] | |
2030 | [1] | |
2031 | [1] | |
2032 | [1] | |
2033 | [1] | |
2034 | [1] | |
2035 | [1] | |
2036 | [1] | |
2037 | [1] | |
2038 | [1] | |
2039 | [1] | |
2040 | [1] | |
2041 | [1] | |
2042 | [1] | |
2043 | [1] | |
No expiry | 44,367 | [1] |
Total non-capital tax losses | $ 44,367 | [1] |
[1]The maximum amount of tax losses that a business can utilize in Tanzania is 70% of its taxable profit for the current year. The remaining 30% of taxable profit is subject to a statutory tax rate of 30%. As a result, Buckreef's current income tax is calculated at an effective tax rate of 9% until Buckreef's tax loss carryforwards are fully utilized. Tax losses in Tanzania can only be utilized by the entity to which the tax losses relate to. |
Income tax (Details Narrative)
Income tax (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Unrecognized non-capital tax loss carry-forwards | $ 88,400 | $ 120,600 |
Deferred tax liability | $ 0 | $ 0 |
Canada [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total average effective tax rate | 26.50% | 26.50% |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total average effective tax rate | 30% | 30% |
Deferred revenue (Details)
Deferred revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Deferred Revenue | ||
Deferred revenue, beginning | $ 2,485 | |
Drawdown | 1,000 | 2,500 |
Deferred transaction costs | (15) | |
Accretion of deferred revenue | 454 | |
Transaction costs expensed | 15 | |
Revenue recognized | (2,227) | |
Deferred revenue, ending | $ 1,727 | $ 2,485 |
Deferred revenue (Details 1)
Deferred revenue (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Deferred Revenue | ||
Current portion of deferred revenue | $ 1,549 | $ 1,864 |
Deferred revenue | 178 | 621 |
Balance at end of year | $ 1,727 | $ 2,485 |
Deferred revenue (Details Narra
Deferred revenue (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Jul. 11, 2023 | Aug. 11, 2022 | |
IfrsStatementLineItems [Line Items] | |||
Deferred revenue description | The Company drew down the first tranche of $2.5 million in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters. | ||
Deferred revenue undrawn | $ 1.5 | $ 1 | |
Purchase Agreement [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Prepaid gold dore | $ 5 |
Derivative financial instrume_3
Derivative financial instrument liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Derivative Financial Instrument Liabilities | ||
Derivative warrant liabilities | $ 3,544 | $ 6,849 |
Total derivative financial instrument liabilities | $ 3,544 | $ 6,849 |
Derivative financial instrume_4
Derivative financial instrument liabilities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Ending balance at derivative warrant liabilities | $ 3,500 | |
Derivative Warrant Liabilities [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance at derivative warrant liabilities | 6,849 | $ 2,149 |
Warrants issued | 2,665 | |
Change in fair value | (3,305) | 2,035 |
Ending balance at derivative warrant liabilities | $ 3,544 | $ 6,849 |
Derivative financial instrume_5
Derivative financial instrument liabilities (Details 2) - Derivative Warrant Liabilities [Member] - $ / shares | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Share price | $ 0.39 | $ 0.48 |
Dividend yield | 0% | 0% |
Expected volatility | 52% | |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 4.43% | 3.32% |
Expected volatility | 55% | |
Remaining term (in years) | 2 years 6 months | 10 months 24 days |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 4.66% | 3.44% |
Expected volatility | 60% | |
Remaining term (in years) | 3 years 4 months 24 days | 4 years 4 months 24 days |
Derivative financial instrume_6
Derivative financial instrument liabilities (Details 3) $ in Thousands | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Derivative Financial Instrument Liabilities | |
Increase loss income | $ (840) |
Decrease loss income | $ 819 |
Derivative financial instrume_7
Derivative financial instrument liabilities (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Aug. 31, 2023 | |
Derivative Financial Instrument Liabilities | ||
Warrant liability | $ 3,500 | |
Gold collar contracts | 1,800 gold ounces per month totalling 9,000 gold ounces to be settled from April 2023 to August 2023, at a maximum and minimum gold price of $2,030 and $1,825 per gold ounce, respectively. | |
Gold ounces expired unexercised | 9,000 | |
Zero cost collar contracts outstanding | $ 0 |
Provision for reclamation (Deta
Provision for reclamation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Provision For Reclamation | ||
Reconciliation for reclamation expenses, beginning | $ 2,815 | $ 2,681 |
Decrease in estimate for provision for reclamation | (2,234) | |
Accretion of provision for reclamation | 252 | 134 |
Reconciliation for reclamation expenses, ending | $ 833 | $ 2,815 |
Provision for reclamation (De_2
Provision for reclamation (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Provision For Reclamation | ||
Future retirement costs | $ 4.1 | $ 3.4 |
Risk-free rate | 13% | 5% |
Inflation rate | 4% | 4% |
Expected timing | 19 years | 18 years |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | ||
Notes and other explanatory information [abstract] | |||
Net income (loss) attributable to shareholders | $ 2,250 | $ (6,216) | |
Weighted average number of common shares for basic EPS | [1] | 282,401,603 | 266,999,724 |
Effect of dilutive stock options, warrants, RSUs and share awards | 6,127,725 | ||
Weighted average number of common shares for diluted EPS | [1] | 288,529,328 | 266,999,724 |
[1]The weighted average number of common shares for basic and diluted EPS include vested, but unissued, common shares relating to common share awards. |
Earnings (loss) per share (De_2
Earnings (loss) per share (Details Narrative) - shares shares in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Stock Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average number of common shares | 10.5 | 7.4 |
Warrants [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average number of common shares | 39 | 42 |
Share Capital (Details Narrativ
Share Capital (Details Narrative) - USD ($) | 1 Months Ended | ||||
May 17, 2023 | Jan. 26, 2022 | Jan. 20, 2022 | Sep. 30, 2021 | May 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||||
Sale of stock | 17,948,718 | 165,889 | 1,723,620 | ||
Fair value of outstanding liability | $ 98,000 | $ 1,200,000 | |||
Outstanding fees settled | $ 373 | $ 98,000 | |||
Sale of stock, value | $ 10,000,000 | ||||
Share issued | 909,901 | ||||
Purchase of warrants | 17,948,718 | ||||
Description of shares and warrants | The common shares and warrants were issued at $0.39 for each common share and a purchase warrant with the right of each whole warrant to purchase one common share at $0.44 for a period of five years from the issue date. The Company also issued 628,205 placement agent warrants with the same terms and incurred commission and other costs of $0.7 million out of which $0.09 million was allocated to the warrants and expensed in the consolidated statements of earnings (loss) and comprehensive income (loss). | ||||
Withholding taxes | 500,000 | ||||
Liability associated with the Omnibus Equity Incentive Plan | $ 1,700,000 | ||||
Purchase Agreement [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of common shares sold | 200,000 | ||||
Number of common shares sold, value | $ 10,000 |
Share based payments reserve (D
Share based payments reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Share-based compensation expense | $ 2,697 | $ 3,113 |
Reserve of share-based payments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance, value | 6,825 | 5,680 |
Share-based compensation expense | 2,697 | 3,113 |
Transfer on exercise of options and other share-based awards | (715) | (1,968) |
Ending balance, value | $ 8,807 | $ 6,825 |
Share based payments reserve _2
Share based payments reserve (Details 1) | 12 Months Ended | ||
Aug. 31, 2023 shares $ / shares | Aug. 31, 2022 shares $ / shares | ||
IfrsStatementLineItems [Line Items] | |||
Number of shares outstanding, ending balance | 4,986,000 | ||
Stock Options [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares outstanding, beginning balance | 5,336,000 | 7,351,000 | |
Weighted average exercise price, beginning balance | $ / shares | $ 0.41 | $ 0.41 | |
Options exercised | (350,000) | [1] | (450,000) |
Weighted average exercise price, options exercised | $ / shares | $ 0.42 | [1] | $ 0.42 |
Options expired | (1,565,000) | ||
Weighted average exercise price, options expired | $ / shares | $ 0.41 | ||
Number of shares outstanding, ending balance | 4,986,000 | 5,336,000 | |
Weighted average exercise price, ending balance | $ / shares | $ 0.41 | $ 0.41 | |
[1]The weighted average share price at the time of the option exercise was C$0.75. |
Share based payments reserve _3
Share based payments reserve (Details 2) | 12 Months Ended | |
Aug. 31, 2023 shares $ / shares | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.41 | [1] |
Number of options outstanding | 4,986,000 | |
Number of options exercisable | 4,986,000 | |
Remaining contractual life | 3 years 1 month 6 days | [1] |
Range 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.40 | |
Number of options outstanding | 2,354,000 | |
Number of options exercisable | 2,354,000 | |
Expiry date | Oct. 11, 2026 | |
Remaining contractual life | 3 years 1 month 6 days | |
Range 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.43 | |
Number of options outstanding | 2,532,000 | |
Number of options exercisable | 2,532,000 | |
Expiry date | Sep. 29, 2026 | |
Remaining contractual life | 3 years 1 month 6 days | |
Range 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.35 | |
Number of options outstanding | 100,000 | |
Number of options exercisable | 100,000 | |
Expiry date | Jan. 02, 2027 | |
Remaining contractual life | 3 years 3 months 18 days | |
[1]Total represents weighted average. |
Share based payments reserve _4
Share based payments reserve (Details 3) - $ / shares | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Number of stock options beginning | 7,375,000 | |
Weighted average exercise price per share beginning | $ 0.50 | |
Number of stock, Options granted | 3,075,000 | 7,375,000 |
Weighted average exercise price per share, Options granted | $ 0.45 | $ 0.50 |
Number of stock options ending | 10,450,000 | 7,375,000 |
Weighted average exercise price per share ending | $ 0.49 | $ 0.50 |
Share based payments reserve _5
Share based payments reserve (Details 4) | 12 Months Ended | |
Aug. 31, 2023 shares $ / shares | ||
IfrsStatementLineItems [Line Items] | ||
Number of exercise price outstanding | $ / shares | $ 0.49 | [1] |
Number of options outstanding | 10,450,000 | |
Number of options exercisable | 3,565,000 | |
Remaining contractual life | 4 years 3 months 18 days | [1] |
Range 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of exercise price outstanding | $ / shares | $ 0.50 | |
Number of options outstanding | 7,375,000 | |
Number of options exercisable | 2,950,000 | |
Expiry date | Aug. 17, 2027 | |
Remaining contractual life | 4 years | |
Range 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of exercise price outstanding | $ / shares | $ 0.45 | |
Number of options outstanding | 3,075,000 | |
Number of options exercisable | 615,000 | |
Expiry date | Aug. 28, 2028 | |
Remaining contractual life | 5 years | |
[1]Total represents weighted average. |
Share based payments reserve _6
Share based payments reserve (Details 5) - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | ||
IfrsStatementLineItems [Line Items] | |||
Grant-date share price | $ 0.41 | $ 0.49 | |
Weighted average grant-date fair value | 0.16 | 0.25 | |
Exercise price | $ 0.45 | $ 0.50 | |
Expected dividend yield | 0% | 0% | |
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Risk-free interest rates | 4.41% | 3.27% | |
Expected life of stock options (in years) | [1] | 2 years 6 months | 2 years |
Expected volatility of share price | [2] | 49% | 62% |
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Risk-free interest rates | 4.78% | 3.43% | |
Expected life of stock options (in years) | [1] | 3 years 4 months 24 days | 5 years |
Expected volatility of share price | [2] | 55% | 72% |
[1]The expected life term of stock options granted is derived from the remaining contractual term.[2]The Company uses historical volatility to estimate the expected volatility of the Company's share price. |
Share based payments reserve _7
Share based payments reserve (Details 6) - shares | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Beginning balance | 1,855,276 | |
Restricted share units, granted | 2,826,493 | 1,855,276 |
Restricted share units, forfeited | (267,412) | |
Restricted share units, exercised | (941,280) | |
Ending balance | 3,473,077 | 1,855,276 |
Share-based payments reserve (D
Share-based payments reserve (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Share based compensation expense | $ 2,700 | $ 3,100 |
Stock Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Share based compensation expense | 700 | 400 |
Restricted share units grant date fair value | 1,070 | |
Restricted Stock Unit [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Share based compensation expense | $ 500 | $ 200 |
Omnibus Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares issued for options | 3,617,450 | 2,106,675 |
Warrants reserve (Details)
Warrants reserve (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Warrants Reserve | |||
Number of warrants, beginning | 41,970,074 | 23,681,052 | |
Weighted average exercise price per share, beginning | $ 0.72 | $ 0.94 | |
Weighted average remaining contractual life | 2 years 9 months 18 days | 3 years 7 months 6 days | 3 years 9 months 18 days |
Number of warrants, Warrants issued | 18,576,923 | ||
Weighted average exercise price per share, Warrants issued | $ 0.44 | ||
Number of warrants, Warrants expired | (287,901) | ||
Weighted average exercise price per share, Warrants expired | $ 1.21 | $ 0.93 | |
Number of warrants, Warrants expired | (3,002,037) | ||
Number of warrants, ending | 38,968,037 | 41,970,074 | 23,681,052 |
Weighted average exercise price per share, ending | $ 0.68 | $ 0.72 | $ 0.94 |
Warrants reserve (Details 1)
Warrants reserve (Details 1) | 12 Months Ended | |
Aug. 31, 2023 $ / shares shares | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants | shares | 38,968,037 | |
Exercise price | $ / shares | $ 0.68 | [1] |
Private Placement Financing Warrants December 232020 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants | shares | 2,777,268 | |
Exercise price | $ / shares | $ 1.50 | |
Warrants outstanding expiry date | Dec. 23, 2023 | |
Private Placement Financing Warrants February 112021 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants | shares | 16,461,539 | |
Exercise price | $ / shares | $ 0.80 | |
Warrants outstanding expiry date | Feb. 11, 2026 | |
Private Placement Financing Broker Warrants February 112021 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants | shares | 1,152,307 | |
Exercise price | $ / shares | $ 0.80 | |
Warrants outstanding expiry date | Feb. 11, 2026 | |
Private Placement Financing Warrants January 262022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants | shares | 17,948,718 | |
Exercise price | $ / shares | $ 0.44 | |
Warrants outstanding expiry date | Jan. 26, 2027 | |
Private Placement Financing Placement Agent Warrants January 262022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of warrants | shares | 628,205 | |
Exercise price | $ / shares | $ 0.44 | |
Warrants outstanding expiry date | Jan. 26, 2027 | |
[1]Total represents weighted average. |
Warrants reserve (Details Narra
Warrants reserve (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | May 31, 2022 | Jan. 26, 2022 | Sep. 30, 2021 | |
IfrsStatementLineItems [Line Items] | ||||
Shares issued | 1,723,620 | 17,948,718 | 165,889 | |
Fair value of warrant liabilities | $ 3,500 | |||
Warrants [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Expected dividend yield | 0% | |||
Expected risk free interest rate | 1.65% | |||
Expected volatality rate | 52% | |||
Expected life | 60 months | |||
Black Scholes [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Shares issued | 17,948,718 | |||
Fair value of warrant liabilities | $ 2,700 | |||
Placement Agent [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Shares issued | 628,205 | |||
Exercise per share | $ 0.44 | |||
Warrants [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Shares issued | 17,948,718 | |||
Warrants [member] | Placement Agent [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Shares issued | 628,205 | |||
Fair value of warrant liabilities | $ 90 |
Non-controlling interest (Detai
Non-controlling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Balance at beginning of year | $ 2,361 | $ (1,533) |
Non-controlling interests 45% share of Buckreef Golds comprehensive earnings | 4,795 | 3,894 |
Balance at end of year | $ 7,156 | $ 2,361 |
Non-controlling interest (Det_2
Non-controlling interest (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Revenue | $ 38,320 | $ 15,094 |
Depreciation | 1,362 | 122 |
Comprehensive income for the period | 7,045 | (2,322) |
Current assets | 17,193 | 15,852 |
Non-current assets | 67,007 | 55,993 |
Total current liabilities | 17,810 | 17,250 |
Cash provided by operating activities | 17,327 | 2,955 |
Cash used in investing activities | (17,872) | (13,868) |
Cash (used in) provided by financing activities | (302) | 5,942 |
Non-controlling interests [member] | Buckreef [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Revenue | 38,320 | 15,094 |
Depreciation | 1,259 | 122 |
Accretion expense | 709 | 134 |
Income tax expense | 5,331 | 436 |
Comprehensive income for the period | 10,656 | 8,651 |
Current assets | 11,238 | 7,253 |
Non-current assets | 64,762 | 53,789 |
Total current liabilities | (12,113) | (8,602) |
Non-current liabilities | (5,301) | (2,815) |
Advances from parent, net | (36,049) | (37,725) |
Cash provided by operating activities | 21,903 | 8,414 |
Cash used in investing activities | (17,863) | (13,065) |
Cash (used in) provided by financing activities | $ (2,012) | $ 4,148 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | ||
IfrsStatementLineItems [Line Items] | |||
Key Management | $ 4,283 | $ 5,163 | |
Share based payments | 2,700 | 3,100 | |
Key management personnel of entity or parent [member] | |||
IfrsStatementLineItems [Line Items] | |||
Key Management | [1] | 2,135 | 2,085 |
Share based payments | $ 2,148 | $ 3,078 | |
[1]Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services. |
Related party transactions (D_2
Related party transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2023 | Aug. 31, 2022 | May 31, 2022 | Jan. 26, 2022 | Sep. 30, 2021 | |
IfrsStatementLineItems [Line Items] | |||||
Payables to related parties | $ 400 | $ 200 | |||
Salaries and benefits | 4,283 | 5,163 | |||
Sale of stock | 1,723,620 | 17,948,718 | 165,889 | ||
Stock value | 7,000 | ||||
Shares granted | 1,300 | 2,500 | |||
Recognized expenses | 700 | 0 | |||
Related loans provided | $ 200 | 0 | |||
First Date Of Common Shares [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Sale of stock | 2,000,000 | ||||
Fair market value | $ 1,400 | ||||
Second Date Of Common Shares [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Sale of stock | 3,600,000 | ||||
Fair market value | $ 2,500 | ||||
Third Date Of Common Shares [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Sale of stock | 2,800,000 | ||||
Fair market value | $ 2,000 | ||||
Key Management [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Fair market value of shares | 1,600,000 | ||||
Salaries and benefits | $ 1,100 | ||||
Stock Options [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Grant date shares | 3,100,000 | ||||
Grant date Value | $ 500 | ||||
Compensation expense | $ 700 | 400 | |||
R S Us [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Grant date shares | 1,200,000 | ||||
Grant date Value | $ 500 | ||||
Compensation expense | $ 200 | $ 100 |
General and Administrative ex_3
General and Administrative expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Directors’ fees (Note 18) | $ 409 | $ 454 |
Insurance | 380 | 444 |
Office and general | 159 | 419 |
Shareholder information | 450 | 474 |
Professional fees | 442 | 614 |
Salaries and benefits (Notes 15 and 18) | 2,470 | 2,533 |
Consulting | 472 | 437 |
Share-based compensation expense (Notes 15 and 18) | 2,501 | 3,113 |
Travel and accommodation | 215 | 214 |
Depreciation | 103 | 26 |
Other | 27 | 192 |
Total general and administrative expenses | $ 7,628 | $ 8,920 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Measured at amortized cost | |||
Amounts receivable | $ 3,140 | $ 2,540 | |
Measured at fair value through profit or loss | |||
Cash | 7,629 | 8,476 | $ 13,447 |
Measured at amortized cost | |||
Amounts payables and accrued liabilities | 11,571 | 7,920 | |
Measured at fair value through profit or loss | |||
Derivative financial instrument liabilities | $ 3,544 | $ 6,849 |
Management of capital (Details
Management of capital (Details Narrative) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Notes and other explanatory information [abstract] | ||
Total equity attributable to owners of parent | $ 53.9 | $ 48.8 |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Monetary assets | $ 2,948 | $ 4,359 |
Canada [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Monetary assets | 303 | 334 |
Monetary liabilities | 868 | 1,223 |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Monetary assets | 7,048 | 4,421 |
Monetary liabilities | $ 13,061 | $ 4,082 |
Financial Instruments (Detail_2
Financial Instruments (Details 2) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | $ 3,544 | $ 6,849 |
Canada [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | (30) | (33) |
Financial liabilities | 87 | 122 |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | (705) | (442) |
Financial liabilities | $ 1,306 | $ 408 |
Segmented Information (Details)
Segmented Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Revenue | $ 38,320 | $ 15,094 |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Revenue | $ 38,320 | $ 15,094 |
Financial instruments (Detail_3
Financial instruments (Details Narrative) $ in Millions | Aug. 31, 2023 USD ($) |
Notes and other explanatory information [abstract] | |
Cash | $ 7.6 |
Current assets | 17.2 |
Current liabilities | 17.8 |
Working capital deficit | 0.6 |
Derivative liabilities | $ 3.5 |
Segmented Information (Details
Segmented Information (Details 1) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Non-current assets | $ 67,007 | $ 55,993 |
Canada [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current assets | 55 | |
Tanzania [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non-current assets | $ 66,952 | $ 55,993 |
Segmented information (Detail_2
Segmented information (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Notes and other explanatory information [abstract] | ||
Revenue percentage | 96% | |
Revenue from customers | $ 36.9 | $ 15.1 |
Non-cash items (Details)
Non-cash items (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Non-cash Items | ||
Depreciation | $ 1,362 | $ 122 |
Change in fair value of derivative financial instruments (Note 11) | (3,305) | 2,035 |
Share-based compensation expense | 2,697 | 3,113 |
Accretion of provision for reclamation (Note 12) | 252 | 134 |
Deferred income tax expense (Note 9) | 4,287 | |
Accretion of lease liabilities | 9 | |
Deferred revenue (Note 10) | (1,227) | 2,485 |
Accretion of deferred revenue (Note 10) | 454 | |
Foreign exchange gains | 151 | |
VAT written-off (Note 5) | 276 | |
Loss on assets disposal | 36 | |
Other expenses | 15 | 282 |
Total non-cash items | $ 4,971 | $ 8,207 |